THE Government yesterday refused to rule out more tax increases next year after figures showed the economy was flatlining.
Ministers were accused of talking the country towards a recession — with zero growth from July to September.
GettyChancellor Rachel Reeves could be forced into a fresh tax raid to shore up the nation’s finances[/caption]
Economists warned there is a risk the UK economy could even have shrunk in the final three months of the year.
And the Institute for Fiscal Studies said Chancellor Rachel Reeves could be forced into a fresh tax raid to shore up the nation’s finances.
IFS boss Paul Johnson said: “It’s not impossible that the Chancellor will feel she needs to come back for yet more money next autumn if the economy doesn’t pick up.”
Earlier this month, the PM refused to rule out further tax increases despite £40billion of tax rises since the election in July — saying that events such as the pandemic could change circumstances.
Following the disappointing economic figures, his spokesman again declined and said: “The Government is now focused on getting growth in the economy that delivers for working people that they feel in their pay slips.”
Shadow Business Secretary Andrew Griffith said: “Labour have killed, plucked and cooked the UK economic goose”.
He added it had been a “summer of trash-talking the economy, an autumn tax-hiking budget and now a winter of discontent with a recession a distinct possibility”.
Liz McKeown, of the Office for National Statistics, said the economy was weaker than previously suggested as people cut back on nights out and advertising spend also fell.
Living standards were also lower than expected with GDP per head falling 0.2 per cent.
Chancellor Rachel Reeves said the figures showed the “challenge we face to fix our economy and properly fund our public finances after 15 years of neglect is huge”.
Zero love for No11
By ASHLEY ARMSTRONG, Sun Business Editor
THE Grinch-like Chancellor has robbed the economy of any optimism and pushed the country to the brink of recession in just a matter of months.
Rachel Reeves had promised businesses stability, and they had been willing her to succeed.
But within days of getting the keys to Number 11 she dashed all the goodwill with warnings of tough and difficult decisions.
Her Budget has made it much more expensive to hire and keep staff — and firms are now rushing to cut jobs, freeze investment and put up prices.
With zero growth, the Chancellor will be lucky to get a lump of coal in her stocking this Christmas.
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