CHANCELLOR Rachel Reeves has described the “challenge” of fixing Britain’s broken economy as “huge.”

She made the commentsafter revised official figures showed today that the economy flatlined in the third quarter of the year.

The Office for National Statistics said that gross domestic product (GDP) showed no growth between July and September.

Statisticians, who had previously forecast 0.1 per cent growth in the quarter, partly blamed the reduction on fresh survey data showing weaker trading by bars and restaurants.

The numbers will be a blow to ministers, who have pledged to grow the economy, and come as businesses issued a warning that Britain is “headed for the worst of all worlds.”

Ms Reeves said: “The challenge we face to fix our economy and properly fund our public finances after 15 years of neglect is huge.

“But this is only fuelling our fire to deliver for working people.

“The Budget and our plan for change will deliver sustainable long-term growth, putting more money in people’s pockets through increased investment and relentless reform.”

The figures cover the period before the Chancellor’s first Budget, which was announced at the end of October.

But a Momentum spokesperson said: “The latest figures of Britain’s flatlining economy are bad.

“But what is far worse is that the Labour government has not outlined the vision, the policies or the political will required to actually deliver for the majority of British people. 

“Before the election, they promised to hit the magic growth button to fund investment, without ever explaining how. 

“Meanwhile, Reeves has repeatedly courted asset management funds like BlackRock, which will achieve nothing other than handing over more of Britain’s infrastructure to predatory extraction of wealth. 

“Only a transformative, unashamedly redistributive programme will deliver the change the people of the UK are crying out for.”

UK Hospitality chief executive Kate Nicholls urged the government to rethink its Budget measures, given the “fragile” state of the economy.

She said: “With business confidence already plummeting and a third of hospitality businesses operating at or below breakeven, the planned changes to employer National Insurance contributions will make generating economic growth even more difficult.”