Starmer admits UK’s economic performance is ‘not good enough’ after economy shrinks in September

15 November 2024, 18:45

Sir Keir Starmer admitted the UK’s economic performance is “not good enough” after figures showed there was little growth between July and September.

The economy slowed over the three-month period, growing by just 0.1%, and shrank during September itself.

Despite these figures not taking into account the subsequent impact of Labour’s autumn Budget, uncertainty over the fiscal event is being blamed for the weak growth.

On a visit to a factory in Wales this afternoon, the Prime Minister said the growth numbers “were not good enough, not satisfactory” and said they were partly due to Britain having changed PMs and Chancellors too often.

“The most important thing is economic stability because that’s what’s going to encourage investors to put their money into the UK,” he said.

Labour made boosting economic growth its top priority when it came into power but the Chancellor Rachel Reeves also admitted this morning she is “not satisfied” with the way the economy is going.

She said: “Improving economic growth is at the heart of everything I am seeking to achieve, which is why I am not satisfied with these numbers.

“At my Budget, I took the difficult choices to fix the foundations and stabilise our public finances.

“Now we are going to deliver growth through investment and reform to create more jobs and more money in people’s pockets, get the NHS back on its feet, rebuild Britain and secure our borders in a decade of national renewal.”

However, many businesses have criticised tax rises in the Budget which they say will lead to higher prices and fewer new jobs.

Major companies, including Marks & Spencer and Sainsbury’s have hinted at price rises because of the changes.

The latest growth figure was weaker than expected and was a sharp slowdown from the 0.5% growth seen in the April to June period.

Read more: Starmer unveils new target to slash UK emissions – but insists he ‘won’t tell Brits how to live their lives’

Read more: Rachel Reeves ‘not satisfied’ as UK growth slows between July and September

Liz McKeown, ONS director of economic statistics, said: “The economy grew a little in the latest quarter overall as the recent slowdown in growth continued.

“Retail and new construction work both performed well, partially offset by falls in telecommunications and wholesale. Generally, growth was subdued across most industries in the latest quarter.”

She added: “In September the economy shrank a little. Services showed no growth with a notable increase in car sales offset by a slow month for IT companies.

“Production fell overall, driven by manufacturing, though there was an increase in oil and gas extraction.”