ECONOMIC growth slowed in the first three months of the new Labour government, according to figures published today.
Statistics from the Office for National Statistics (ONS) show that the economy grew by just 0.1 per cent between July and September, compared with 0.5 per cent in the previous quarter.
Chancellor Rachel Reeves said: “Improving economic growth is at the heart of everything I am seeking to achieve, which is why I am not satisfied with these numbers.”
According to ONS, the economy is estimated to have contracted by 0.1 per cent in September.
During that month, the services sector, which makes up the bulk of the economy, was flat, having experienced a sharp slowdown from growth of 0.6 per cent the previous three months.
Ben Jones, an economist at business lobby group the CBI, said: “Uncertainty ahead of the Budget probably played a big part, with firms widely reporting a slowdown in decision-making.”
The Resolution Foundation said the slowdown put growth over the first three-quarters of the year at 1.3 per cent, falling behind the US with 1.9 per cent.
The think tank also highlighted that per capita gross domestic product (GDP) had fallen to £9,250 in the third quarter and remained 0.7 per cent below its level at the end of 2019.
Resolution Foundation senior economist Simon Pittaway said: “The UK has fallen below the US at the top of the G7 GDP growth leaderboard, with growth slowing, wage rises shrinking and employment starting to fall.
“The UK has been a GDP rollercoaster over the past 12 months, but its medium-term performance has been staid and stagnant.
“Over the past five years, the economy has shrunk by 0.7 per cent once you account for population growth.”
TUC general secretary Paul Nowak said: “The government inherited a failed economy.
“And the Tory legacy of stagnant growth and living standards, crumbling public services and record numbers of people who are too sick to work is still having an impact.
“But the Budget showed ministers are committed to repairing our broken economy.
“Increased public investment is a vital first step towards reshaping and rebuilding Britain, securing the stronger economy, higher wages and decent public services that the country desperately needs.”
