"The UK economy flatlined in July, according to official figures, in grim news for Rachel Reeves as she gears up for a challenging budget. It was a slowdown compared with June, when the economy grew by 0.4%, according to the Office for National Statistics. GDP expanded strongly in the first half of the year, making the UK the fastest-growing economy in the G7, but it had been widely expected to slow in the second half."
"Business groups have blamed Reeves's 25bn increase in employer national insurance contributions (NICs), which came into force in April alongside a significant rise in the national living wage, for putting the brakes on growth. The chancellor is widely expected to have to present a package of tax increases when she delivers her second budget on 26 November, to compensate for an anticipated downgrade in the Office for Budget Responsibility's forecasts."
The UK economy recorded zero GDP growth in July, following 0.4% growth in June. Strong expansion in the first half made the UK the fastest-growing G7 economy, but growth cooled in the second half. Business groups blamed a £25bn rise in employer national insurance contributions and an increase in the national living wage for slowing activity. The chancellor is widely expected to propose tax increases in the 26 November budget to offset an anticipated downgrade by the Office for Budget Responsibility. Inflation rose to 3.8% in July, reducing expectations for near-term Bank of England rate cuts and leaving the Bank likely to keep rates at 4%.
Read at www.theguardian.com
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