The UK economy grew little between July and September.

getty images

The UK economy grew little between July and September, with uncertainty over the budget contributing to the weak growth.

The economy has slowed for three months, growing just 0.1% and contracting in September.

Labor made boosting economic growth a top priority when it came to power, but Prime Minister Rachel Reeves said she was not satisfied with the latest figures for the first three months of the new government.

However, many businesses have criticized the budget's tax hikes, saying they would lead to higher prices and fewer new jobs.

Major companies including Marks & Spencer, Sainsbury's and JD Sports have hinted they will increase prices as a result of the changes.

The latest growth figures were weaker than expected and marked a sharp slowdown from the 0.5% growth from April to June.

Many economists said concerns about what the October budget would contain had influenced how businesses and households behaved.

Ben Jones, chief economist at CBI Business Group, said companies had widely reported a “slowdown in decision-making” ahead of the Budget. He added that once it was announced, “it set off a warning light for the business.”

A rise in national insurance premiums for businesses, along with other measures such as raising the minimum wage, “is expected to trigger a more cautious approach to wages, employment and investment,” Jones said.

“The economy has a little less momentum than we previously thought,” said Ruth Gregory, UK economist at Capital Economics. “It’s surprising that the economy has grown in only two of the last six months. “he said.

But she added: “This does not mean the UK is in another recession.”

When an economy grows steadily, people tend to spend more, additional jobs are created, more taxes are paid, and workers' wages increase more.

'It felt like people were blocking it'

Andy Crisp, manager of Vapiano, a pasta and pizza restaurant in Manchester, said he had noticed Reeves' budget slowing down a bit.

He said the summer was a half-and-half affair and ended quite strongly, with sales up 2 to 3 percent from a year ago.

But a week before the budget was passed, he noticed a drop in visitor numbers.

The only thing we could potentially put down was that there was tension before the budget came out about what this meant for me. What does it mean to the general public?

“So it felt like people were holding back to see what the end result would be.

The Prime Minister told the BBC that growth was the government's “number one mission” and that he wanted to “see it grow stronger and be felt by families across the UK.”

Reeves was criticized for criticizing the economy ahead of the Budget, but when asked if his comments had affected his spirit, he said: “We've had very little growth in the British economy for over a decade.”

Shadow Chancellor Mel Stride said Labor policies had “slowed significantly” growth.

Labor made many promises about growth at this election. “We must act now before broken promises result in more tax increases.”

Liberal Democrat Treasury spokeswoman Daisy Cooper said the growth figures were “disappointing”, adding that the tax rises announced in the Budget “could be the final nail in the coffin for many already struggling small businesses”.

The government wants the UK to become the fastest growing economy among the G7 advanced economies.

From July to September, the UK currently ranks fifth in the G7, behind the US, France, Germany and Japan, but above Italy. Canada has not yet released growth figures.

The Office for National Statistics (ONS) said UK growth was “sluggish across most industries” in the latest quarter.

One big factor has been a slowdown in the services sector, which dominates the UK economy and includes businesses such as shops, bars and restaurants.

The sector grew by just 0.1% over the three months, with no growth at all in September.

In October, Reeves announced what he called a “budget for growth.”

But the Government's independent forecasting agency, the Office for Budget Responsibility, said the budget would only provide a temporary boost to the UK and the size of the economy was “unlikely to change significantly within five years” compared to previous estimates.

The UK faces another potential challenge to growth if US President-elect Donald Trump goes ahead with his plan to impose a blanket 20% tariff on all imports into the US.

Analysis by the University of Sussex's Center for Inclusive Trade Policy suggests the measures could hit UK exports by $22 billion.

The Prime Minister told the BBC he was looking forward to working closely with Donald Trump but would advocate for free and open trade that would benefit both economies.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos