In what comes as a major setback for the Labour government in the UK, the Office for National Statistics in its latest revision of the July to September quarter, has said that the British economy showed no growth against the previous estimate of 0. In the third quarter, the British economy flatlined, according to downwardly revised official figures Monday. Notably, the new Labour government headed by Keir Starmer has made growth its top priority.
The agency partly considers the reduction to be due to the fresh survey data, which shows weaker trading across bars and restaurants. The reduction has offered an opportunity for critics who say that Labour talked down the economy on taking power on July 5 for the first time in 14 years when it described its economic inheritance from the previous Conservative administration as being the worst in generations.
Treasury chief promises to turbocharge growth
Treasury chief Rachel Reeves promised to turbocharge economic growth after Labour won the July election but has now seen the economy stall over the three months to September, while official figures earlier this month also pointed towards a 0.1% decline in October.
“The challenge we face to fix our economy and properly fund our public finances after 15 years of neglect is huge," she said.
In her first budget in late October, Reeves raised taxes on businesses to help shore up public finances and ailing services. Many economists say the budget has further damaged the British economy as many businesses are responding to the tax rise by either raising prices or reducing employees or wages.
Mel Stride, the economy spokesman for the Conservatives, said "warning lights are flashing” on the economy. “Having inherited the fastest-growing economy in the G-7, growth has tanked on Labour's watch,” Stride said.
(With agency inputs)
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