The promise made by the United Kingdom Prime Minister, Rishi Sunak to boost the economy has suffered a setback as the country has entered into technical recession.
Shadow chancellor Rachel Reeves warned that the UK fell into recession, stressing that the economy is ‘’in tatters’’, after the Office for National Statistics (ONS) revealed on Thursday a 0.3 per cent decline in gross domestic product (GDP) between October and December 2023.
The unkind official figures mean the economy entered a technical recession, as defined by two or more quarters in a row of falling GDP, for the first time since amid the pandemic in the first half of 2020.
This is a setback for the prime minister, who has promised to grow the economy as one of his five priorities, especially after most economists were only forecasting a 0.1 per cent decline in GDP.
In comments Labour suggested were “out of touch”, chancellor Jeremy Hunt said low economic growth is “not a surprise”, but added that the UK must “stick to the plan – cutting taxes on work and business to build a stronger economy” despite tough times for many families.
The shadow chancellor Rachel Reeves has responded to the latest figures showing that the UK economy has entered a technical recession: She said “Rishi Sunak’s promise to grow the economy is now in tatters.
“The prime minister can no longer credibly claim that his plan is working or that he has turned the corner on more than 14 years of economic decline under the Conservatives that has left Britain worse off. This is Rishi Sunak’s recession and the news will be deeply worrying for families and businesses across Britain.”
She added: “It is time for a change. We need an election now to give the British people the chance to vote for a changed Labour Party that has a long-term plan for more jobs, more investment and cheaper bills. Only Labour has a plan to get Britain’s future back.”
