Chancellor Admits Growth Figures Are 'Disappointing': Defends Economic Handling
-
The UK Chancellor has acknowledged that the country's economic growth figures are disappointing, but defended the government's handling of the economy. Recent data from the Office for National Statistics (ONS) revealed that the UK's gross domestic product (GDP) contracted by 0.1% in October, following a similar decline in September2.
Economic Context
The contraction marks the first time the UK economy has experienced two consecutive months of negative growth since the onset of the COVID-19 pandemic in 2020. The services sector, which accounts for the largest proportion of the country's output and employment, recorded no growth in October, with arts and entertainment, hotels and food services, and wholesale among the sub-sectors that slowed2.Chancellor's Response
Chancellor Rachel Reeves expressed her disappointment with the latest economic data but emphasized that the government's policies are designed to deliver long-term growth for the UK economy. She stated, "The numbers on today’s GDP are disappointing, but it’s not possible to turn around more than a decade of poor economic growth and stagnant living standards in just a few months"3. Reeves highlighted the government's commitment to improving economic growth and driving up living standards through their Plan for Change.Public and Expert Reactions
The announcement has sparked a range of reactions from economists and the public. Some experts have pointed to global tariff threats, uncertainty from the Budget, and a weak month for consumer spending as contributing factors to the economic contraction. Others remain optimistic that the government's policies will eventually lead to a rebound in growth.Conclusion
While the latest economic figures are disappointing, the UK government remains steadfast in its commitment to fostering long-term economic growth. The Chancellor's acknowledgment of the challenges ahead underscores the need for continued efforts to address the underlying issues and build a more resilient economy.
jkl
jkl
jkl
jkl
jkl
jkl
jkl
jkl