Rachel Reeves has spoken out about today’s “disappointing” economic figures after Britain’s growth slumped yet again.
The Chancellor was delivered a fresh blow this morning when the Office for National Statistics revealed that the UK economy shrank by 0.1 per cent in October, following an identical 0.1 per cent fall in September, defying economists’ expectations of a return to growth.
Responding to the dire figures, 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.
“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.
Rachel Reeves said she was “disappointed” with the figures
ITV Pool
“This Government are getting on with the job in improving economic growth and driving up living standards.”
The latest figures were also released after the Government delivered its first Budget, which included £40billion worth of tax rises.
LATEST DEVELOPMENTS
The powerhouse services sector recorded zero growth in October, following a similar stagnation in September.
ONS data showed particular weakness across several key sectors, with pubs, restaurants and retail all reporting poor performances.
Between July and September, the UK economy managed to eke out growth of 0.1 per cent.
This represented a slowdown from the stronger 0.4 per cent increase recorded between April and June.
Chancellor Rachel Reeves delivered the controversial Budget in October
HM TREASURY
Liz McKeown, ONS director of economic statistics, said: “The economy still grew a little over the last three months as a whole.”
The October decline added to a picture of economic uncertainty during the second half of the year.
Shadow Chancellor Mel Stride criticised Labour’s handling of the economy, warning that families would feel the impact through “higher taxes, fewer jobs, higher prices and higher interest rates”.
Reeves remained positive about future growth
ITV Pool
He blamed the declining growth figures on the Chancellor’s decisions and “continually talking down the economy”.
“It is no wonder businesses are sounding the alarm,” Stride added.
The Shadow Chancellor’s comments come as Starmer’s Government faces ongoing criticism over controversial elements of the Budget, including changes to inheritance tax and winter fuel payments.
