According to the Office for National Statistics on Monday, the UK economy showed stagnation in the third quarter, with revised figures indicating no growth in GDP for the three months leading to September, rescinding the previously suggested 0.1% increase.
This presents a significant challenge for Prime Minister Keir Starmer, whose administration has faced criticism for not fulfilling its promises of job creation and improved living standards. In addition, the economy’s slowdown is noteworthy, considering its prior strong performance compared to other G7 nations earlier this year.
The economic outlook for the UK appears to be under increased duress following negative reactions to Chancellor of the Exchequer Rachel Reeves’s tax-heavy budget.
With growing concerns about the potential impacts, the Bank of England also forecasts stagnant growth for the fourth quarter, corroborated by the Confederation of British Industry’s warning on Monday of a steep decline in private-sector activity in the coming months.
