UK Economy Stagnates in April: Election Rivals Criticize Conservative Economic Policies

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The UK economy experienced zero growth in April, according to the latest figures from the Office for National Statistics (ONS). This stagnation has provided ammunition for the Labour and Liberal Democrat parties, who argue that the Conservative government's economic strategies are failing. The ONS report highlighted that heavy rainfall, marking the wettest April in 12 years, contributed to a decline in retail sales and construction output, significantly impacting the overall GDP.

 

The report revealed that GDP growth in April was flat, a sharp contrast to the 0.4% increase recorded in March. This outcome aligns with predictions from a Reuters poll of economists, who had anticipated a 0% growth due to the adverse weather conditions. The ONS data showed UK rainfall at 155% of the long-term average for April, leading to a 1.4% decline in construction output. This decline was also influenced by poor demand for construction products in the manufacturing sector. Production saw a 0.9% drop, while the services sector, which accounts for nearly 80% of the UK’s total output, grew by just 0.2%.

 

Prime Minister Rishi Sunak’s narrative of an improving economy has been called into question by these figures. The UK had just emerged from a brief recession at the end of 2023, with 0.6% growth recorded in the first quarter of the current year. However, expectations for the second quarter are more modest, with economists predicting around 0.3% growth, half the rate achieved between January and March.

 

The general election set for July 4 looms large, with these economic indicators likely to play a significant role in campaign narratives. Shadow chancellor Rachel Reeves criticized the Conservative government, stating, "Rishi Sunak claims we have turned a corner, but the economy has stalled and there is no growth. These figures expose the damage done after 14 years of Conservative chaos." Reeves outlined Labour’s plan to grow the economy by bringing back stability, unlocking private sector investment, and reforming the planning system. She dismissed the Conservative's approach as "more of the same," describing it as a "desperate wish list of unfunded spending promises that will mean £4,800 more on people's mortgages. Rishi Sunak's plan is a recipe for five more years of Tory chaos."

 

Liberal Democrat Treasury spokeswoman Sarah Olney echoed these sentiments, arguing that the lack of growth in April showed the Conservatives had "utterly failed" to deliver on their promises. "As Rishi Sunak's time as prime minister peters out, so does the UK's economic growth," she said. Olney criticized the Conservatives for presiding over stagnation and economic misery for hardworking families across the country, stating, "The Conservatives' manifesto shows they simply lack the ambition and vision to get the economy moving again. It's clear for voters across the country that the only way to make it happen is to vote them out of office on July 4."

Chancellor Jeremy Hunt remained optimistic despite the disappointing figures. He insisted, "There is more to do, but the economy is turning a corner and inflation is back down to normal." Hunt emphasized that the Conservatives would continue to "keep the economy growing with our clear plan to cut taxes on work, homes and pensions."

 

Looking ahead, the economic projections for the rest of the year remain cautious. Yael Selfin, chief economist at KPMG UK, suggested that there could be renewed momentum in the coming months, supported by an improvement in consumer sentiment as pay growth remains strong. She noted that the early summer general election could help resolve political uncertainties, potentially providing a boost for business investment. However, Selfin warned that whichever party wins the election will have to contend with several supply-side challenges that will constrain the UK's long-term growth potential. She predicted that economic activity would remain sluggish in historical terms this year, with growth expected to be just 0.5%.

 

As the election approaches, the latest economic data will undoubtedly fuel further debate and scrutiny of the Conservative government's policies, with opposition parties seizing every opportunity to highlight what they see as the failures of the current administration. The electorate will have to weigh these arguments carefully as they decide which party can best navigate the UK through its current economic challenges.

 

Credit: Sky News 2024-06-13

 

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[Purdey]

Wonder what the Tories will do to lift the economy in time for the election? 

[Srikcir]

Brexit- the pain that keeps on giving.

May 24, 2567 BE — UK GDP in Q1 2024 was 1.7% above its pre-pandemic level of Q4 2019. This compares with Eurozone GDP being 3.4% higher. https://commonslibrary.parliament.uk

Research by the Centre for European Reform suggests the UK economy is 2.5% smaller than it would have been if Remain had won the referendum. Public finances fell by £26 billion a year. This amounts to £500 million a week and is growing. https://en.wikipedia.org

 

 

 

[mrfill]

2 hours ago, Purdey said:

Wonder what the Tories will do to lift the economy in time for the election? 

 

Disappear?

[dunroaming]

1 hour ago, Srikcir said:

Brexit- the pain that keeps on giving.

May 24, 2567 BE — UK GDP in Q1 2024 was 1.7% above its pre-pandemic level of Q4 2019. This compares with Eurozone GDP being 3.4% higher. https://commonslibrary.parliament.uk

Research by the Centre for European Reform suggests the UK economy is 2.5% smaller than it would have been if Remain had won the referendum. Public finances fell by £26 billion a year. This amounts to £500 million a week and is growing. https://en.wikipedia.org

 

 

 

Well the Tories will be gone in the upcoming election, dead and buried and rightly so.  The circus started with Johnson and the lies about Brexit and has continued with more of his incompetent chums from that point on.  Let's hope that Labour grasp the metal and start negotiations to re-join the EU as soon as possible.

 

However I don't think that Labour has the where-with-all to run the country properly either.  Britain is really up s**tcreek and there isn't a paddle in site.

 

I have always been a Tory voter in the past but now I think they need to be kicked out and start again with some fresh blood.  They need some honest brokers and to get rid of the current lot completely!