April 24, 2024
Economy

Rishi Sunak’s promises to kickstart the economy in tatters as Britain plunges into recession


There are concerns there will be yet more savage cuts to decimated public services – the Office for National Statistics, on Thursday, said the economy shrank by a worse-than-feared 0.3% in the final three months of last year

Prime Minister Rishi Sunak boasted the economy had ‘turned a corner’(PA)

Rishi Sunak’s promises to kickstart the economy were in tatters on Thursday as Britain plunged into recession.

One of the PM’s five key pledges was to grow the economy. But Shadow Chancellor Rachel Reeves blasted: “Britain remains trapped in a spiral of economic decline.” It sparked further fears of another round of savage cuts to public services.




The Office for National Statistics on Thursday said the economy shrank by a worse-than-feared 0.3% in the final three months of last year.

The fall – after a 0.1% drop the previous quarter – amounts to a technical recession. Ms Reeves said: “Rishi Sunak’s promise to grow the economy is now in tatters. Britain remains trapped in a spiral of economic decline.”

The figures came a day after Mr Sunak boasted the economy had “turned a corner”. Ms Reeves also said the average British family is 20% worse off than those in Germany, with one in three working-age households having less than £1,000 in savings, as many face – or have already been hit by – a surge in mortgage or rent bills.

Chancellor Jeremy Hunt said: “While interest rates are high – so the Bank of England can bring inflation down – low growth is not a surprise.”

He is reportedly considering slashing billions of pounds from public spending plans to fund tax cuts in next month’s Budget. The Resolution Foundation think tank said that by another measure – gross domestic product per person – the economy has not grown since the start of 2022, making it the worst run since records began in 1955.



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