Rachel Reeves 'not satisfied' as UK growth slows between July and September

15 November 2024, 07:25 | Updated: 15 November 2024, 08:00

Growth in the UK economy slowed between July and September compared to the previous quarter, new data show.

The UK economy grew by 0.1% over the period, versus 0.5% growth between April and June, the Office for National Statistics (ONS) said.

This marks a drop from the 0.2% growth predicted by economists and comes following Labour’s first budget in government.

Speaking this morning, Rachel Reeves said she is “not satisfied” with the numbers.

"Improving economic growth is at the heart of everything I am seeking to achieve, which is why I am not satisfied with these numbers,” she said.

"At my Budget, I took the difficult choices to fix the foundations and stabilise our public finances.

"Now we are going to deliver growth through investment and reform to create more jobs and more money in people's pockets, get the NHS back on its feet, rebuild Britain and secure our borders in a decade of national renewal."

Liz McKeown, ONS director of economic statistics, said: "The economy grew a little in the latest quarter overall as the recent slowdown in growth continued.

"Retail and new construction work both performed well, partially offset by falls in telecommunications and wholesale. Generally, growth was subdued across most industries in the latest quarter.

"In September the economy shrank a little. Services showed no growth with a notable increase in car sales offset by a slow month for IT companies.

"Production fell overall, driven by manufacturing, though there was an increase in oil and gas extraction."

Reeves used her Mansion House speech to announce plans to rip up red tape, saying regulations held back growth and investment.

Reeves told the City of London that measures brought in following the 2008 economic crash have "gone too far".Regulations designed to "eliminate risk" have had "unintended consequences" by holding back UK growth.

The Chancellor insists "economic growth" will be the "central mission" in the future - and was key manifesto promise of the Labour Party in the run up to the general election.

Ms Reeves announced a package of reforms aimed at driving competition across financial services.

Ms Reeves has written to the Financial Conduct Authority, Prudential Regulation Committee, Financial Policy Committee and Payment Systems Regulator to push for a greater focus on growth.

The proposed pension "mega funds" could see around £80 billion freed up to invest in UK businesses and infrastructure.