Despite Rishi Sunak’s promise to boost the economy, official figures have shown no growth in April. The Office for National Statistics revealed that monthly growth went from 0.4% in March to 0% in April, indicating a slowdown in recovery from the recent recession. This setback was caused by heavy rainfall, which deterred consumer spending despite an increase in services. However, production and construction industries saw a decline.
Additionally, the cost of living crisis continues to burden the public, with output in services for consumers dropping by 0.7%. This disappointing news comes as Prime Minister Boris Johnson faces challenges in the polls and a lack of economic bounce back before the upcoming general election on July 4. Despite Sunak’s claim in February that the economy had turned a corner, this recent stagnation paints a different picture.
Despite this setback, there is some positive news as the UK experienced its fastest economic growth in two years from January to March, enabling a quick exit from recession. The monthly GDP data is volatile, but there was a 0.7% growth from February to April. However, the ONS report dampens Prime Minister Boris Johnson’s assertion that the UK economy is thriving, especially after a first-quarter growth of 0.6%.
Labour’s shadow chancellor Rachel Reeves criticized the government’s handling of the economy, pointing out the lack of growth and damage caused by Conservative policies. She emphasized Labour’s plan for economic growth through stability, private sector investment and planning reform contrasting it with Tories approach.
The divide between parties on economic issues becomes even more apparent during this General Election campaign as both sides continue to present their visions for how best to grow and develop Britain’s economy post-Brexit.
