Responding to today’s ONS GDP statistics for
January, the Chancellor of the Exchequer, said:
“In the face of severe global challenges, the UK economy has
proved more resilient than many expected, but there is a long way
to go.
“Next week, I will set out the next stage of our plan to halve
inflation, reduce debt and grow the economy - so we can improve
living standards for everyone.’’
Notes to editors
- The IMF are predicting that 90% of advanced economies will see
a decline in growth in 2023. Germany, Italy and France also saw
weak growth in Q4 2022.
- The UK was the fastest growing economy in the G7 in 2022.
- The Bank of England are now forecasting that a recession will
be shallower than previously predicted. In November the OBR said
that government policy will reduce the depth of recession.
- Since 2010, the UK has grown faster than France, Japan and
Italy. Since the EU referendum, we have grown at about the same
rate as Germany.
- The government is maintaining record levels of capital
investment - £600bn over the next 5 years – including investment
in critical infrastructure like Northern Powerhouse Rail, HS2 and
Sizewell C, and safeguarding the highest ever R&D budget.
- To support business to invest and innovate, the government has
permanently set the Annual Investment allowance at its highest
ever level of £1 million, introduced a £13.6 billion package of
business rates support, and committed to reviewing EU-derived
regulations in key growth sectors.
- Earlier this month, the government launched its plan to cement
the UK’s place as a science and technology superpower by 2030,
alongside a raft of new measures backed by over £370 million to
boost investment in innovation, bring the world’s best talent to
the UK, and seize the potential of ground-breaking new
technologies like AI.
MP, Labour's Shadow
Chancellor, responding to GDP figures published this
morning, said:
"Today's results show our economy is still inching along this
Tory path of managed decline.
"People will be asking themselves whether they feel better off
under the Tories, and the answer will be no.
"But this is not a new trend. 13 years of Tory failure and wasted
opportunities have left growth on the floor and our economy
weakened.
"What we need now is the ambition to grow our economy so every
part of Britain feels better off, which is what Labour's mission
to secure the highest sustained growth in the G7 will do."
GDP: Chancellor must
boost pay to get economy moving, says TUC
Commenting on today’s (Friday) GDP figures, which show GDP growth
at zero in the three months to January, TUC General Secretary
Paul Nowak said:
"To fix the economy the government needs to get on with fixing
pay. Pay cuts have forced families to cut their spending. And
that means businesses have fewer customers. The Chancellor must
put pay rises at the heart of next week’s budget. It’s the fuel
in the tank that our economy needs to get moving again.
“The other thing holding back our economy is Conservative cuts to
our public services and infrastructure. If we want a stronger
economy, we need stronger public services. We need healthcare,
childcare, education, and transport systems that meet the needs
of working families and businesses. This is the big credibility
test for the government’s economic plans.”
The TUC’s budget submission called on the government to boost
pay, deliver plans for strong public services and fair taxation,
and protect families from the cost of living emergency. Specific
recommendations include:
- Fund decent pay rises so that all public service workers get
a real-terms pay rise.
- A new funding settlement for public services, with adjusted
spending plans that mitigate the impact of high inflation on
departmental budgets.
- Ensure those with the broadest shoulders pay their fair share
in tax. Equalise capital gains tax rates with income tax to start
ensuring the fairer taxation of wealth and tax windfall gains
experienced by oil and gas giants at a higher rate, removing
loopholes that allow businesses to avoid paying their fair share.
- Cancel the imminent hike in energy bills by keeping the
Energy Price Guarantee no higher than £2,500 and either reduce
the EPG to £2,000 or accelerate the introduction of a social
tariff.
- Introduce universal, flexible, high-quality childcare that is
available to all from the point at which paid maternity or
parental leave ends.
The full set of recommendations is here: https://www.tuc.org.uk/research-analysis/reports/spring-budget-2023
