The UK’s manufacturing sector has been growing at the fastest rate in more than two years – as allies urge Keir Starmer to be more positive.
Closely-watched PMI figures showed activity at the highest level in 26 months, as firms and consumers benefit from easing inflation.
The S&P Global UK index came in at 52.5 last month, up from 52.1 in July. Anything above 50 indicates growth.
The strong stats emerged despite grim messaging from the PM, who has warned of ‘pain’ looming with tax rises in the Budget next month.
Commons Leader Lucy Powell sparked derision yesterday when she argued that there would have been a run on the Pound if the government had not slashed winter fuel payments for millions of pensioners.
New Labour architect Lord Mandelson has suggested that Sir Keir should be striking a more positive tone about what the party wanted to achieve rather than stressing ‘sacrifices’.
Closely-watched PMI figures showed manufacturing activity at the highest level in 26 months, as firms and consumers benefit from easing inflation
The strong stats emerged despite grim messaging from the PM (pictured), who has warned of ‘pain’ looming with tax rises in the Budget next month
Asked on BBC Radio 4’s Westminster House whether the PM needed to offer more inspiration to Brits, the peer said: ‘They’ve got to show what’s at the end of that journey.
‘They’ve got to show what the sacrifice is about. They’ve got to show what the difficult trade-offs and choices are being made for. And I’ve no doubt that they will do that.’
Business leaders have raised concerns that an economic upturn could be ‘snuffed out’ by a tax-raising Budget next month and Labour’s plans for a union-friendly package of workers’ rights.
Despite Britain recording the fastest growth in the G7, Chancellor Rachel Reeves claimed last month that Labour had inherited ‘the worst set of circumstances since the Second World War‘.
In a speech last week the PM said the situation was so bad that a ‘painful’ tax-raising Budget would be needed, adding: ‘Things will get worse before they get better.’
Ministers have fuelled speculation about higher taxes on wealth and investment, including hikes to capital gains tax and inheritance tax.
Financial advisers have reported a ‘frenzy’ among investors seeking to sell off assets ahead of a possible rise in taxes next month.
Rob Dobson, director at S&P Global Market Intelligence, said: ‘The UK manufacturing sector remained a positive contributor to broader economic growth in August.
‘The upturn is broad-based across manufacturing, with the investment goods sector the standout performer.
‘The upturn continues to be driven by the domestic market, which is helping to compensate for lost export orders.’
Commons Leader Lucy Powell sparked derision yesterday when she argued that there would have been a run on the Pound if the government had not slashed winter fuel payments for millions of pensioners