UK Economy Stalls, Recession Fears Grow

The UK economy has flatlined in Q3 2024, with revised GDP figures showing no growth, raising concerns of a looming recession as the Bank of England forecasts zero growth for Q4. This stagnation has left the economy 0.1% smaller than when Labour took power, with GDP per capita shrinking by 0.2%. Business confidence has plummeted, exacerbated by Labour's recent Budget that increased National Insurance for employers, leading to fears of a hiring recession. Critics attribute the economic downturn to Labour's tax policies and negative messaging, which have dampened investment and consumer confidence. The Confederation of British Industry warned that firms expect to reduce output and hiring in the coming months, indicating a bleak outlook for early 2025. Despite some analysts predicting a slight rebound in growth, the overall economic narrative remains grim as the UK teeters on the brink of recession.