Britain’s economy has ground to a halt as businesses and households tighten their belts ahead of Rachel Reeves’s tax-raising Budget.

UK plc was at a standstill in July, in more evidence of a slowdown that could heap more trouble on the Chancellor.

Britain’s economy has ground to a halt as businesses and households tighten their belts ahead of Rachel Reeves’s tax-raising Budget.

Economists expect a slowdown to take hold of the U.K. in the latter half of 2025.

Official GDP figures confirm widely expected slowdown after strong expansion in first half of the year

On another dismal day for Labour, official figures showed output flatlined in July, triggering warnings from business leaders that the Government 'cannot tax its way to growth'.