UK economic woe continues as economic growth on decline
Following recent United Kingdom’s reported economic downturn, stats has revealed major decline in the month of October.
This decline has come as a devastating blow to the United Kingdom’s budget proposed by the Prime Minister Kier Starmer.
According to reports by the London School of Economics, “The British economy has been stagnating, with the real wages growing by an average 33% a decade from 1970 to 2007.
“The UK’s economic growth has been slow, with a growth rate of 0.1% in Quarter three (July to September, 2024).
“The country’s productivity growth has also been weak, with a decline in manufacturing output and information and communication services.”
However, solving recent UK’s economic woes, economic experts have proposed a new economic pattern that will focus on investing in the future, rather than relying on the past successes, which includes boosting public investment, encouraging good work and higher wages, and solving regional inequalities.
Reaction from Chancellor Rachel Reeves, “There won’t be another like this again.”
The UK economy declined again in October, as revealed by official figures, which serves, yet, as another let-down to Rachel Reeves.
UK Economic Woe Continues
The Office for National Statistics (ONS) disclosed that output fell by 0.1 per cent after 0.1 decline was reported for the previous month.
The most recent figures released can cover the month before the government’s first budget, which made Labor announce £40bn worth of tax rises.
This brings about fractional shift in the appearance of the economy after adding 0.1% growth over the last quarter, between July and September.
The ONS stated that the services sector recorded no growth in October, and also in November, it remained static.
Reacting to the situation, the Chancellor Rachel Reeves conceded and assured the populace that all efforts are put in place to deliver long-term economic growth.
According to her, he said: “We are determined to deliver economic growth as higher growth means increased living standards for everyone, everywhere.
“This is what our Plan for Change is all about.
“While the figures this month are disappointing, we have put in place policies to deliver long-term economic growth.”
The current economic report comes as the government continues to be criticized over the more disputed condiments of the Budget, which include changes to inheritance tax and the winter fuel payment.
UK Economic Woe Continues
CBI’s Optimism Over Economy Improvement In 2025
Confederation of British Industry (CBI) said firms in the United Kingdom are optimistic about economic improvement in 2025.
In its swift reaction to the economic decline, the UK organization said through its lead economist Ben Jones, “UK firms remain hopeful that things will improve in the New Year.
“It may take a few more months for firms to work through the impact of the sharp increase in employment taxes outlined in the Budget and adjust their hiring and investment plans accordingly.
“But businesses can probably still look forward to a steady, if unspectacular, economic recovery next year as the impact of the inflation shock fades and interest rates come down further.”
He stressed: “The government can support business confidence by accelerating measures that could restore some headroom for investment.
“These include delivering flexibility to the Apprenticeship Levy, preparing a faster timetable to reform business rates and working in full partnership with boardrooms to develop a long-term modern industrial strategy that can provide the stability and certainty needed to unlock innovation, investment and grow the economy.
The Office for National Statistics(ONS) reports a 0.1% decline in the United Kingdom’s GDP in October.
Labor Is Responsible For The ‘Economy’ Downgrade – Mel Stride
Shadow chancellor Mel Stride warns that families will feel the adverse effects of declining growth figures through higher taxes, fewer jobs, higher prices, and higher
He added: “It is no wonder businesses are sounding the alarm. This fall in growth shows the stark impact of the Chancellor’s decisions and continually talking down the economy.”
This came as another blow to Rachel Reeves as GDP dwindles for two consecutive months.
The most recent figures released can cover the month before the government’s first budget, which made Labor announce £40bn worth of tax rises.
UK Economic Woe Continues
According to the Independent’s Political Correspondent Millie Cooke reports.
Rachel Reeves Describes GDP Stats ‘Disappointing’
Chancellor Rachel Reeves vows to deliver economic growth, stressing that higher growth boosts living standards for everyone, everywhere, as she responds to October’s GDP statistics.
“This is what our Plan for Change is all about.
“While the figures this month are disappointing, we have put in place policies to deliver long-term economic growth.
“We have put public finances back on a stable footing, capped the rate of corporation tax at the lowest level in the G7, established a £70 billion National Wealth Fund to drive growth in our towns and cities, launched a 10-year infrastructure strategy and are creating pension mega funds to boost investment in British businesses, infrastructure and clean energy.”
‘Weak October experienced by Oil and gas extraction, pubs and restaurants and retail’
The current figures from ONS come after the body reported 0.1% growth between July and September, a non-growth on the 0.4% increase recorded between the months of April and June.
In a statement of ONS’s director of economic statistics Liz McKeown, she said: “The economy contracted slightly in October, with services showing no growth overall and production and construction both falling.
“Oil and gas extraction, pubs and restaurants and retail all had weak months, partially offset by growth in telecoms, logistics, and legal firms.
“However, the economy still grew a little over the last three months as a whole.”
UK Economic Woe Continues