The UKʼs economic performance has shifted dramatically since early-24. During first half-year Britain led G7 growth charts but post Jul-4 election things changed quick: growth fell from 0.5% to just 0.1% in third-quarter
The numbers dont look good when comparing with other G7 nations. While Keir Starmer and Rachel Reeves promised top-spot growth Britain now sits second-last among major economies — only Italy (with zero growth) performed worse. Other countries showed better results:
- US economy grew 0.7%
- France showed 0.4% increase
- Germany and Japan both reached 0.2%
- Canadaʼs expected growth: around 0.25%
The slow-down seems tied to pre-budget worry (which affected many business choices). “Decision-making slowed down significantly before budget announcement; this set-off warning signals for business sector“ says Ben Jones from CBI
Iʼm not satisfied because improving economic growth is at the heart of everything I am seeking to achieve
The economic down-turn got worse in Sep-24 with a 0.1% monthly drop — first decline since Apr. Angela Raynerʼs union-power plans added extra pressure: businesses face up to £4.5bn in compliance costs
Recent budget choices by Reeves included a £25bn employer tax increase and capital-gains changes. The Institute of Directors thinks new pension reform plans wont balance-out these tax impacts on business growth and investment