Rachel Reeves warned tax rises could damage growth as economy flatlines for second month in a row [Video]

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Rachel Reeves has been warned that expected tax rises in October’s Budget could damage growth, after suprise new figures showed the economy flatlining.

Economists said there could be further misery ahead as a result of the chancellor’s decisions and higher energy bills this winter.

In May, the chief economist at the Office for National Statistics described the economy as “going gangbusters”.

But the latest figures unexpectedly showed growth has stalled for the second month in a row.

Rachel Reeves warned change …