The UK economy flatlined in the third quarter of 2024, with GDP growth revised down to 0% from an initial estimate of 0.1%.

In addition, the Office for National Statistics (ONS) revised second quarter growth down from 0.5% to 0.4%.

Labour's Shadow Chancellor Rachel Reeves acknowledged the significant challenges ahead to improve the economy and public finances after years of neglect.

Facing a stalled economy, Reeves noted a reported 0.1% decline in October 2024, further complicating efforts to boost economic growth.

The Confederation of British Industry (CBI) indicated that companies anticipate reducing output and hiring while increasing prices due to tax rises from the recent Budget.

Concerns regarding the government's Budget have contributed to slow growth, leading to uncertainty in the economic outlook as the country approaches the new year.

The UK is on track for two consecutive quarters of stagnant economic activity, influenced by declining business and consumer confidence amid anticipated tax increases.

The Bank of England has raised concerns about persistent inflation and a stagnant economy, predicting zero GDP growth for the last quarter of 2024.

Weaker performance in sectors such as bars, restaurants, legal firms, and advertising has contributed to the decline in economic activity.

The CBI warned of a steep decline in economic activity expected at the beginning of 2025, with firms planning to cut hiring and output.

The UK economy has shown few signs of recovery after entering a technical recession in the second half of 2023, marked by two consecutive quarters of contraction.

Disposable household income recorded no growth in Q3 2024, following a growth of 1.4% in the previous quarter.