Britain on ‘recession watch’ after economy shrinks for second month in a row, experts warn
BRITAIN is on “recession watch” after the faltering economy shrank for the second month in a row, experts say.
Output contracted by 0.1 per cent in the four weeks before October’s Budget.
Retailers and wholesalers were hit before its release as ministers peddled a “doom and gloom” message on the state of public finances before launching a £40billion tax raid.
Julian Jessop, of the Institute of Economic Affairs, said: “The second successive monthly fall in economic activity in October should put the UK firmly on recession watch.
“The new government’s negative rhetoric over summer and the anticipation of a tight Budget have damaged sentiment.”
Two months of successive negative growth had not been seen since April 2020.
The latest figures, however, did show growth was 0.1 per cent higher in the three months to October, said the Office for National Statistics.
Chancellor Rachel Reeves called the GDP figures “disappointing”.
She added: “It’s not possible to turn around more than a decade of poor economic growth and stagnant living standards in just a few months.”
Shadow Chancellor Mel Stride said: “Labour’s talking down of the economy, hiking of taxes and loading up on red tape is killing growth.
“We all pay the price.”
Growth.. in gloom
SO much for growth, growth, growth — the Chancellor delivered a boom in gloom instead.
Warnings of a tough Budget led firms to stop hiring and investing and shoppers to stop spending.
The economy went backwards in October.
Then came the £25bn National Insurance raid on employers.
Bosses say it will mean higher prices and fewer jobs.
I dread next month’s figures, and so should the Chancellor.