UNIONS called for a “grown-up conversation” about taxing wealth, banks and gambling companies today, after data showed Britain’s economy has flatlined.

The TUC also hit back at a banking boss for suggestions that public-sector pay should be curbed because the economy is doing poorly.

Data from the Office for National Statistics (ONS) today revealed zero growth in gross domestic product (GDP) in July, following just 0.4 per cent growth in June.

The stagnation was expected by economists and comes ahead of the autumn Budget, with speculation mounting that Chancellor Rachel Reeves may raise taxes to meet her self-imposed fiscal rules.

A Treasury spokesman toay echoed earlier comments by Ms Reeves that “whilst our economy isn’t broken, it does feel stuck.”

“There’s more to do to build an economy that works for, and rewards, working people,” he said.

The latest data also comes ahead of the Bank of England’s next interest rate decision next week.

TUC general secretary Paul Nowak said that while the government has “taken the right approach” by investing in public services and infrastructure, “the job of securing growth is far from over — and more support is needed to see that investment sustained in the long term.”

“That’s why it’s time for a grown-up conversation about taxing wealth and financial institutions,” he said.

“It’s only right that banks, gambling companies and the wealthiest in our society contribute their fair share to fund our schools, hospitals and local authorities.

“The government needs to ensure it can repair and rebuild our vital public services along with wider critical national infrastructure.”

Mr Nowak also called on the Bank of England to further cut interest rates to “ease the pressure on household budgets and to make it more affordable for businesses to invest.”

Barclays boss CS Venkatakrishnan said the government should limit pay rises for public-sector workers, telling the Financial Times that wage inflation was a problem across Britain’s economy.

The chief executive of the banking group said that expenditure needs to be restrained “at the government level,” particularly in relation to rising wages for public-sector workers.

Overall wage growth has slowed in recent months, remaining at an average rate of 5 per cent in the three months to June — rising to 5.7 per cent for the public sector following strong industrial action and campaigning by unions.

Mr Nowak described Mr Venkatakrishnan’s remarks as “tone deaf,” adding: “This banking boss has some brass neck.

“It’s frankly insulting for him to call on nurses, teachers and paramedics to tighten their belts when he’s just pocketed a bumper pay rise.”

The Barclays chief was paid £10.5 million last year, more than double the previous year, after cashing in long-term bonuses boosted by the bank’s share price rising.

Mr Nowak said: “He seems to have conveniently forgotten we’re in the middle of a recruitment and retention crisis in our public services.

“That’s bad for the country, and it’s bad for businesses.

“Companies like Barclays rely on staff being able to see a GP, send their kids to school and get to work safely.

“Public services aren’t a luxury — they’re the backbone of a functioning economy. And they are only as strong as the staff who work in them.”

He said that instead of “talking down” to public-sector workers, “those with the broader shoulders — including the mega wealthy like CS Venkatakrishnan, banks and gambling companies — should contribute their fair share to fund our schools, hospitals and local authorities.”

Green MP Carla Denyer said that Ms Reeves and Prime Minister Keir Starmer “have bet everything on ‘going for growth’ and it’s just not working.”

Posting on X, she said: “[It’s] time for a rethink — instead of tinkering around the edges and ripping up protections for people and nature, we need to tax extreme wealth and invest in our future.”

SNP economy spokesman Dave Doogan said families and businesses across Scotland “are paying the price for the Labour government’s failure and its damaging policies.”