The UK economy failed to grow in the third quarter

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The UK economy failed to grow in the third quarter, according to the latest official figures, a fresh blow to the Labor government.

Domestic production The Office for National Statistics said on Monday that there had been no growth in three months, down from its initial estimate of 0.1 percent expansion.

The economy lagged behind as the main service sector stagnated during the quarter. Production output decreased by 0.4 percent, which showed an increase of 0.7 percent in the construction sector.

This figure is a hindrance to the government, which has made increasing the economic growth the starting point of its agenda. Surveys point to a chilling effect of Chancellor Rachel Reeves’ tax-raising budget in October, which hit business confidence and curbed hiring intentions.

Reeves acknowledged on Monday that the government faced “huge” challenges but insisted the budget laid the groundwork for long-term growth.

If the growth meets projections made in the budget, Reeves will likely need to pass spending cuts or higher taxes next year to continue meeting its debt obligations.

“After 15 years of neglect, the challenge to rebuild our economy and manage our public finances is enormous,” Reeves said. But this only fuels our fire to deliver to employees.

Last week Andrew Griffiths, the shadow business secretary, said the UK was headed for “clear depression” and a possible recession. He said that if there was a recession it would be done “at Downing Street”.