UK economy showed no growth in last quarter, revised figures show
The UK economy showed no growth in the last quarter, according to the revised figures from the Office for National Statistics (ONS).
The previous estimate for July and September said the economy grew by 0.1%.
Early estimates show that real GDP per head fell by 0.2% in the third quarter of 2024, and is 0.2% lower compared with the same quarter a year ago.
The UK and Italy had the lowest growth in the G7 in the third quarter, both flatlining.
The slight growth initially recorded last month was already slower than what had been expected by experts and marked a drop from the 0.4% growth between April and June.
Bars and restaurants, legal firms and advertising performed “less well”, the director of economic statistics Liz McKeown said on Monday.
“The household saving ratio fell a little in the latest period, though remains relatively high by historic standards,” she added.
“Meanwhile, real household disposable income per head showed no growth.”
The ONS also revised down its growth reading for the second quarter of 2024, to 0.4%. In September, it said it thought GDP had increased by 0.5%, which was a reduction from previous estimates.
More bad news – and could it get worse?
It’s more bad economic news for the country and for Labour, of course.
A government that used to say it wanted the fastest growth in the G7 is now languishing at the bottom of that league table in its first quarter in government.
And the Bank of England just last week revised its forecast (post-budget) to say that there would be no growth from October to December.
If that were the case, we’d end up with half a year of no growth.
The chancellor Rachel Reeves, whose budget has been criticised by business leaders, released a statement that said the challenge to “fix our economy” is “huge”.
After “15 years of neglect” – referring to the previous Tory government – she said the problems are “fuelling our fire to deliver for working people”.
“The budget and our plan for change will deliver sustainable long-term growth, putting more money in people’s pockets through increased investment and relentless reform,” she added.
Speaking to broadcasters on Monday morning, Labour’s Chief Secretary to the Treasury Darren Jones said his government’s plan was to work with “investors, wealth creators and workers” to “stimulate economic growth”.
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Shadow culture secretary Stuart Andrew described the latest figures as “really disappointing”.
He told Sky News “We’re seeing these really worrying signs that sort of the warning signs are on really for the economy”.
“They have to have a think about this again, the increases in national insurance has made a significant impact,” he said – though the data covers a period before the budget was announced.
“Clearly people’s confidence in the growth of the economy has gone, and so they really need to think about the disastrous decisions they made in the budget.”
An amber warning has been issued for snow in a part of the UK, likely to cause travel delays and “stranding some vehicles and passengers”.
The warning, which covers south west England, also warns some rural communities could become cut off and is in place until 2pm this evening.
Pic: Met Office
There is also a yellow weather warning for snow covering the southern counties of England until midnight on Wednesday.
The warning stretches from Kent to Cornwall and up to south London and the Met Office said between 2cm and 5cm of snow could accumulate fairly widely, with as much as 10cm over higher ground.
This week is expected to see the coldest nights of the year, with temperatures potentially reaching -14C on Wednesday night and -16C on Thursday night, both in the North East of England and Scotland, the Met Office said.
Weather warnings issued on Tuesday for snow and ice covering the parts of Wales, the North West of England, west and northern parts of Scotland as well as Northern Ireland will remain in place until midnight tomorrow.
The forecaster said some roads and railways are likely to be affected and there could be icy patches on untreated roads.
Pics: AP
Meanwhile the Environment Agency has said at least 300 properties have flooded across England since New Year’s Eve. It estimates more than 41,000 properties have been protected.
Heavy rainfall over the New Year caused significant river and surface water flooding across the North West of England and Yorkshire and snowmelt has brought further disruption to parts of England, particularly the Midlands, the agency said.
Read more from Sky News:
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Man says flooding ‘came out of nowhere’
Floods minister Emma Hardy said: “My sympathies go out to the people, businesses and communities impacted by the recent flooding across the country.
“I want to express my heartfelt thanks for the vital work that the Environment Agency and emergency services are doing to keep people safe. People must continue to follow their advice and sign up for flood warnings.”
Flood warnings
Some 100 flood warnings were in force across England on Wednesday, with people urged to remain vigilant over the coming days.
A danger-to-life warning was issued on Tuesday morning for the River Soar near Barrow upon Soar, Leicestershire, but was later removed.
People living in caravan parks in the area were urged by the Environment Agency to act, with a large-scale evacuation needed to save lives.
Firefighters have rescued dozens of people across Leicestershire since Monday, Leicestershire Fire and Rescue Service said.
Hundreds of schools were closed across the UK, with road and rail links blocked, as Manchester, Bristol and Liverpool John Lennon airports suspended flights because of the conditions.
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