UK economy's stagnation pressures Reeves into new tax measures, economist warns
Date
12/30/2024 7:10:46 AM
(MENAFN) The UK economy’s sluggish performance could compel Shadow Chancellor Rachel Reeves to reconsider her pledge and impose additional tax hikes, a prominent economist has suggested, reports John-Paul Ford Rojas.
Revised data released yesterday revealed zero economic growth in the third quarter of 2024, revising down an earlier estimate of 0.1 percent growth.
Conservative business spokesman Andrew Griffith criticized Labour’s economic management, asserting it had "killed, plucked and cooked the UK economic goose."
Paul Johnson, head of the Institute for Fiscal Studies (IFS), echoed concerns, telling Times Radio "If the economy remains stagnant, it’s conceivable that the Chancellor might find it necessary to seek additional revenue by next autumn."
The latest data from the Office for National Statistics (ONS) underscores mounting economic challenges under Labour’s leadership. While UK GDP had shown promise earlier in the year—expanding by 0.7 percent in Q1 and 0.4 percent in Q2, matching US growth rates among G7 nations—the recent stagnation signals waning momentum.
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