Britain’s economy is set to flatline until after the next election, according to the Bank of England.
The forecast is a hammer blow to Rishi Sunak, who made growing the economy one of his five promises to voters in January.
According to the Bank, the UK’s gross domestic product (GDP) will not grow at all between now and 2025. The election is expected next year.
Interest rates were also held at 5.25%, with Bank of England governor Andrew Bailey warning that they are likely to stay there for “an extended period”.
Shadow chancellor Rachel Reeves said: “These forecasts are a damning indictment of 13 years of economic failure that has left working people worse off.
“At the start of the year, Rishi Sunak and Jeremy Hunt promised to get the economy growing. These figures show we are going in the wrong direction.
“We are forecast to have gone from low growth to no growth, with working people paying the price.”
In January, Sunak vowed to grow the economy as well as halve inflation, cut debt, slash NHS waiting lists and stop small boats carrying asylum seekers over the English Channel.
There was some good news for the prime minister, however, with the Bank of England forecasting that inflation will continue to fall next year.
Jeremy Hunt said: “Inflation is falling, wages are rising and the economy is growing. The UK has been far more resilient than many expected, but the best way to deliver prosperity is through sustainable growth.”
The chancellor said the Autumn Statement, which he will deliver later this month, “will set out how we will boost economic growth by unlocking private investment, getting more Brits back to work, and delivering a more productive British state”.