Fears are mounting for the British economy today after a second consecutive month of falling GDP.
Activity was down 0.1 per cent in October, after recording the same reduction in September. That was far worse than the 0.2 per cent growth analysts had pencilled in.
Although UK plc was still marginally in positive territory over the quarter, businesses have been voicing alarm that the impact of Labour’s Budget tax raid has yet to be felt.
Chancellor Rachel Reeves admitted the official figures were ‘disappointing’.
ONS Director of Economic Statistics Liz McKeown said: ‘The economy contracted slightly in October, with services showing no growth overall and production and construction both falling.
Fears are mounting for the British economy today after a second consecutive month of falling GDP
Activity was down 0.1 per cent in October, after recording the same reduction in September
‘Oil and gas extraction, pubs and restaurants and retail all had weak months, partially offset by growth in telecoms, logistics, and legal firms.
‘However, the economy still grew a little over the last three months as a whole.’
Ms Reeves said: ‘We are determined to deliver economic growth as higher growth means increased living standards for everyone, everywhere.
‘This is what our Plan for Change is all about. ‘While the figures this month are disappointing, we have put in place policies to deliver long term economic growth.
‘We have put public finances back on a stable footing, capped the rate of corporation tax at the lowest level in the G7, established a £70billion National Wealth Fund to drive growth in our towns and cities, launched a 10 year infrastructure strategy and are creating pension mega funds to boost investment in British businesses, infrastructure and clean energy.’
