Government is resembling a business entering administration – John McDonnell responds to GDP contracting

John McDonnell MP, Shadow Chancellor, commenting on GDP contracting by 0.4% in April, said:

“The whole country is hurting while the Tory leadership candidates compete on tax cuts for high earners.

“With GDP going backwards over two consecutive months, this government is resembling a business entering administration.

“Wages, investment and productivity are all stagnant – and only Labour's plan for a £10 per hour Real Living Wage, National Transformation Fund and regional industrial strategy will deliver the sustainable growth we need to turn this ailing economy around.”

Ends

Notes to Editors: 

• Month-on-month GDP growth in April 2019 was -0.4% (following month-on-month growth of -0.1% in March 2019):https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpmonthlyestimateuk/april2019
• The ONS also revealed today that production input fell by 2.7% between March 2019 and April 2019; the manufacturing sector fell by 3.9%, the largest fall since June 2002: https://www.ons.gov.uk/economy/economicoutputandproductivity/output/bulletins/indexofproduction/april2019.
• Services output was absolutely flat (0.0% growth) in April 2019 after falling by 0.1% in March 2019: https://www.ons.gov.uk/economy/economicoutputandproductivity/output/bulletins/indexofservices/april2019