Labour will today [Monday 21 August] warn that the economy is
‘stuck in a low growth trap under the Conservatives,’ as new
analysis of economic forecasts reveal that UK growth will be the
slowest in the G7 in 2023.
Buried in the small print of the Bank of England’s latest
Monetary Policy Report, economic growth is “expected to be weaker
throughout much of the forecast period, particularly during 2024
and at the beginning of 2025.”
The UK’s Growth forecasts are downgraded from 0.75% to 0.5% by
the Bank of England. That means the UK will be the slowest
growing economy in the G7 based on the IMF’s forecasts.
Labour will today claim that the forecasts expose ‘choice facing
Britain at the next election: between a change Labour that will
deliver growth or more chaos and incompetence under the
Conservatives that will leave Britain worse off.’
, Labour’s Shadow Economic
Secretary to the Treasury, said:
“After thirteen years of chaos and incompetence, these new
forecasts reveal that the economy will be left stuck in a low
growth trap under the Conservatives.
“Low growth has become the hallmark of the Conservatives and
Rishi Sunak’s time in power. It has led to higher taxes, higher
prices in the shops and the British people worse off.
“The choice facing Britain at the next election is becoming
clearer: between a changed Labour Party that will deliver growth
or more chaos and incompetence under the Conservatives that will
leave us worse off.”
Ends
Notes
- UK Growth next year is expected to be the slowest in the G7
[Table 1.D and IMF WEO update July 23]
- The Bank now doesn’t think inflation will get back to the 2%
target until 2025 Q2 [[Table 1.D]
- Market expectations of interest rates have risen much faster
in the UK than the US or Europe since May, due to persistence of
high inflation. (Section 2.2)
Source: Monetary Policy Report -
August 2023 and IMF World Economic Outlook
July Update
