Chancellor has responded to the ONS October GDP
statistics.
The Chancellor said:
“High inflation, exacerbated by Putin’s illegal war, is slowing
growth across the world, with the IMF predicting a third of the
world economy will be in recession this year or next.
“While today’s figures show some growth, I want to be honest that
there is a tough road ahead. Like the rest of Europe, we are not
immune from the aftershocks of Covid-19, Putin's war and high
global gas prices.
“Our plan has restored economic stability and will help drive
down inflation next year, but also lay the foundations for
long-term growth through continued record investment in new
infrastructure, science and innovation."
Additional information:
- September saw an additional Bank holiday. In previous years
we have seen falls in GDP in months with additional Bank
holidays, and seen this effect unwind in the following month.
- IMF forecasts from October show the UK and EU area facing
similar downgrades to growth over this year and next when
compared to their January forecast, and show Germany seeing an
even larger downgrade.
- The government is supporting the Bank of England’s mission to
get inflation back to target by taking responsible decisions on
tax and spending.
- The government is protecting research and innovation, by
recommitting to increasing direct funding for R&D to £20
billion a year across the UK by 2024-25, a cash increase of
around a third compared to 2021-22 and the largest ever increase
over a Spending Review period.
- The government will maintain public capital investment at
record levels, delivering £600 billion of investment over the
next five years.
