The Chancellor 's response to ONS July GDP
statistics is below:
Chancellor of the Exchequer said:
“Only by halving inflation can we deliver the sustainable growth
and pay rises that the country needs.
“But there are many reasons to be confident about the future. We
were among the fastest in the G7 to recover from the pandemic and
the IMF have said we will grow faster than Germany, France, and
Italy in the long term.”
Additional information:
- The ONS noted that GDP in July was impacted by one off
factors , in particular strike action in the public sector and
exceptionally wet weather.
- Looking at the broader picture, the ONS make clear that GDP
increased by 0.2% in the three months to July 2023, with growth
in all three main sectors.
- Since 2010, the UK has grown faster than France, Japan and
Italy, and about the same rate as Germany.
- Recent figures have shown that by 2021 the UK had actually
recovered faster than France, Germany, Italy and Japan, with the
economy 0.6% above pre-pandemic levels by 2021 Q4.
- The Spring Budget tackles two of the biggest issues for UK
growth – employment levels and business investment – while also
supporting households with cost-of-living pressures.
- This includes major reforms to help parents back to work with
an expansion of free childcare and a £27 billion tax cut for
business through radical ‘full expensing’ policy and capital
allowances reform, which the IMF say will boost growth.
- We are maintaining record levels of capital investment -
£600bn over the next 5 years – including investment in critical
infrastructure.
, Shadow Chancellor of the
Exchequer, responding to the GDP figures this morning
said:
“Today is another dismal day for growth, and the British economy
remains hostage to the Conservatives’ low growth trap that is
leaving working people worse off.
“After thirteen years of instability, the Conservatives have left
the British economy weaker and families having to cope with
higher taxes, higher mortgages and higher food and energy bills.
“Labour’s plan for the economy is about boosting growth so we can
improve wages, bring down bills and make working people in all
parts of the country better off.”
