What about that development drive, Chancellor? Labour stalls economic system as GDP slumps to only 0.1% in first quarter after dire September – a fortnight earlier than ‘large tax’ Budget

Rachel Reeves‘ growth drive suffered another blow today as figures showed the economy close to flatlining.

UK plc eked out a 0.1 per cent GDP expansion in the first quarter of the year, worse than analysts had expected.

It came after activity went into reverse in September, dipping by 0.1 per cent over the month.

The grim numbers heap more pressure on the Chancellor ahead of her Budget on November 26 – when she is poised to hammer the country with tax rises again.

Ms Reeves and Keir Starmer have made getting growth the core of their plans, admitting that is the only way to improve living standards.  

However, her raid on businesses last year – hiking national insurance for employers – has been widely blamed for crushing activity. 

ONS Director of Economic Statistics Liz McKeown said:’Growth slowed further in the third quarter of the year with both services and construction weaker than in the previous period. There was also a further contraction in production.

‘Across the quarter as a whole manufacturing drove the weakness in production. There was a particularly marked fall in car production in September, reflecting the impact of a cyber incident, as well as a decline in the often-erratic pharmaceutical industry.

‘Services were the main contributor to growth in the latest quarter, with business rental and leasing, live events and retail performing well, partially offset by falls in R&D and hair and beauty salons.’