UK economy 'grinding to a halt' as growth slumps

THE Government faces a stark warning about the looming “spectre of recession” following economic stagnation in the latter half of this year, with projections suggesting further weakness in 2026.

- Samuel NORMAN

Data released yesterday by the Office for National Statistics (ONS) revised downward the second quarter's economic expansion to 0.2% from the previously reported 0.3%.

The third quarter saw meagre growth of just 0.1%, with the ONS indicating the figures illustrate a decelerating economy.

Lindsay James, investment strategist at Quilter, said the data “all but confirms what has become very clear in the second half of the year - the UK economy is grinding to a halt and showing little sign of achieving what it did in the first half of the year.”

The development represents a significant setback for Labour, which declared economic growth would be its “defining mission,” and for Rachel Reeves, who has placed her political credibility on delivering prosperity.