London, Yiannis Haniotakis

The United Kingdom’s economy remained stagnant in July, according to official data, an ominous news for Finance Minister Rachel Reeves, as it is preparing to present the budget in the fall.

This development marks a slowdown compared to June, a month during which the economy had grown by 0.4%, according to the National Statistical Service (OMS). Despite the strong growth of GDP in the first half of the year, which made the United Kingdom the G7’s fastest growing economy, the slowdown in the second half was widely expected.

OR zero development of July on an annual basis raises questions about promise of Labor to restart the economy.

However, during the quarter by the end of July, the economy developed by 0.2% compared to the previous quarter.

Commenting on the details, the OMS Economic Statistics Director, Liz McCunsaid that production reductions have offset the meager development in services and construction. “The growth of the economy as a whole has continued to slow down in the last three months,” he said. “While the development of the services was maintained, production declined further. In the service sector, health, computer programming and office support services were performing well, while production falls were due to extensive weakness in all processing sectors. “

The Labor Government has set the growth of the economy as priority When she took power last summer, but the finance minister admitted this week that the economy was stuck.

US Commercial War has proved to be a hindrance to global activity this yearbut business circles attribute the slowdown to growth to the increase in employers’ social security contributions by £ 25 billion, imposed by Rachel Reeves and entered into force in April, along with one significant increase of the national minimum wage. Inflation is currently in almost in twice the target of 2% of the Bank of England, harming the prospects for future interest rate cuts.

Attention is now turning quickly to next budgetexpected at November 26and the nervousness of the measures that will adversely affect the climate. The Minister of Finance is under pressure to further increase taxes to cover a “black hole” in public finances estimated between 30 and 40 billion pounds. She has excluded an increase in income tax, social security contributions of workers and VAT, which, she has repeatedly stated, would cause immediate damage to the “workers”.

The British Retail Council warned on Friday that 400 of the country’s largest stores could close If their facilities are integrated into a proposed higher scale of business coefficients. He argued that they are already under pressure from the increasing employment costs and taxes, which are responsible for the closure of 1,000 such sites in the last five years.

Commenting on Ons’ details, a Treasury spokesman said: “We know that there is more to be done to enhance growth, because while our economy is not damaged, it gives the feeling that it is stuck. This is the result of years of underlying, which we are determined to reverse through our plan for change. We make progress: This year’s growth was the fastest in the G7, the elections have fallen five times in the elections and real wages have increased faster than under the previous government. There is more to be done to build an economy that works for workers and rewards them. That is why we reduce unnecessary bureaucracy, transform the planning system to rebuild Britain and invest billions of pounds in affordable homes, Sizwell C and local transport across the country. “

The shadow Minister of Finance, Mel Straidreplied: “While the government is overwhelmed from one scandal to another, borrowing costs recently reached a high 27 -year -old – a condemnation vote of no confidence against labor that makes painful tax increases almost certain. It is not strange that Starmer has removed the budget control from Rib. But to set aside it is not enough – it must also reject its failed economic approach that has made Britain poorer. “