Gloomy pre-Budget warnings led to stalled growth in Labour’s first three months in power, figures show

GLOOMY pre-Budget warnings led to stalled maturation successful Labour’s archetypal 3 months successful power, figures show.

The economy grew conscionable 0.1 per cent betwixt July and September amid debased concern confidence.

It is an adjacent bigger slowdown than expected from the 0.5 per cent successful April to June.

The UK present has the 2nd worst maturation among the G7 of largest developed economies — contempt PM Sir Keir Starmer pledging to marque the federation the G7’s fastest-growing.

Chancellor Rachel Reeves yesterday tried to play down the figures, lone saying she was “not satisfied”.

Her Tory counterpart Mel Stride blamed Labour for talking down the system aft its July predetermination win, and said it was “reaping, to a degree, what they’ve done”.

CBI pb economist Ben Jones said: “Uncertainty up of October’s Budget astir apt played a large part, with firms wide reporting a slowdown successful decision-making. Hopefully this volition beryllium a blip.”

Simon Pittaway, astatine think- vessel the Resolution Foundation, added: “After bouncing backmost from recession earlier this year, the betterment is already moving retired of steam.”

Growth was subdued crossed astir industries.

The work industry, 1 of the hardest-hit by the Chancellor’s taxation raid, saw 0.1 per cent growth.

Kate Nicholls, of UK Hospitality, said: “These lacklustre figures marque it wide the system is successful a fragile place.”

She said the imaginable for maturation remained “if the Government rethinks changes to National Insurance Contributions and takes a High Street-first attack to growth”.

Downing Street said the Government was focused connected supporting semipermanent maturation to guarantee everyone benefits from prosperity.