Shadow Chancellor Mel Stride has delivered scathing criticism of the Government’s economic performance following the latest GDP figures showing a second consecutive monthly decline.
The UK economy shrank by 0.1 per cent in October, marking the second consecutive monthly decline, according to the Office for National Statistics (ONS).
Speaking to GB News, Stride said: “Well, it’s not good. These are stark figures. This is the second consecutive month in which the economy has contracted.
“Now, bear in mind that the government actually inherited the fastest growing economy in the G7 from the last Conservative government.
Mel Stride commented on the latest figures from ONS
GB News
“What this shows is that this government’s constant talking down of the UK economy is coming through in these numbers.
“Now, of course, we’ve had a Budget. We’re going to be seeing higher taxes, higher inflation, higher interest rates, downward pressure on wages and higher unemployment.
LATEST DEVELOPMENTS
“It’s no surprise that businesses right up and down the country are now sounding the alarm.”
The contraction came as a surprise to economists, who had expected a return to growth following September’s 0.1 per cent fall.
The latest figures cover the period ahead of the Government’s first Budget, which included £40bn worth of tax rises.
Discussing the figures in an interview today, Chancellor Rachel Reeves said: “The numbers on GDP are disappointing, but it’s not possible to turn around more than a decade of poor economic growth and stagnant living standards in just a few months.
Rachel Reeves labelled the figures “disappointing”
ITV Pool
“But you’ll see from the plans we’ve been announcing whether that is the energy reforms we’ve published today, the reforms to build 1.5 million homes that we published yesterday, the pensions reforms, the creation of a national wealth fund.”
“This Government are getting on with the job in improving economic growth and driving up living standards.”
The decline represents a shift in economic outlook after the economy had managed to achieve 0.1 per cent growth during the July to September quarter.
Pubs, restaurants and retail were among sectors reporting particularly weak performance during October, the ONS reported.
Chancellor Rachel Reeves delivered her first Budget in October
PA
The ONS reported zero growth in the services sector during October, following a similar stall in September.
The data paints a picture of a jittery economy during the second half of the year.
Liz McKeown, the ONS’s director of economic statistics, noted: “The economy contracted slightly in October, with services showing no growth overall and production and construction both falling.”
