Rachel Reeves handed major setback as UK economic growth slumps | Politics | News [Video]

Rachel Reeves has been handed a major setback after it was revealed that the UK’s economy suffered a slump in Labour’s first quarter.

Economic growth slowed between July and September relative to the previous quarter, according to official data from the Office of National Statistics (ONS).

The economy grew by 0.1% over the period, versus 0.5% growth between April and June.

The estimate was behind economist predictions of 0.2% and comes after Labour unveiled a rise in Government spending and business taxes in the Autumn Budget last month.

The economy is estimated to have contracted by 0.1% in September 2024, after growth in the months before that, largely because of declines in factory output and IT services.

Ms Reeves said: “Improving economic growth is at the heart of everything I am seeking to achieve, which is why I am not satisfied with these numbers.

“At my Budget, I took the …