BRITAIN’S economy flatlined for the second month in a row, figures revealed today, with union leaders saying it showed a need for an “ambitious industrial strategy.”

Gross domestic product (GDP) recorded no growth in July, the latest Office for National Statistics data showed, despite economists expecting a rise of 0.1 per cent.

It had previously seen a rise of 0.6 per cent between April and June.

Institute of Chartered Accountants economic director Suren Thiru warned that growth could slow further in the coming months with “higher energy bills and expected tax rises likely to trigger renewed restraint in spending and investment.”

Following the figures, Chancellor Rachel Reeves said she was “under no illusion about the scale of the challenge” the country faces and that the government was “not going to be able to turn everything around in one night, or indeed in one Budget.”

TUC general secretary Paul Nowak said that the new Labour government had “recognised the scale of the challenge our economy faces after years of poor performance and chaotic crises under the Conservatives.”

He said: “After another month without growth our recovery remains fragile. 

“We remain firmly well below our potential — in the last 12 months, growth was only 1.1 per cent.

“This government has rightly promised significant investment to revitalise UK industry and to start to address the Tories’ manufacturing decline. 

“This will help create strong growth that delivers good jobs and improves pay.

“Now is the time for an ambitious industrial strategy that drives our economy forward again.”

The government will set out its plans for public spending and taxes in the autumn Budget at the end of October.