The United Kingdom’s Prime Minister, Rishi Sunak, faces a setback in fulfilling his commitment to boost the economy as the country officially enters a technical recession. Shadow Chancellor Rachel Reeves issued a warning, asserting that the UK’s economic condition is now “in tatters” following the announcement of a 0.3 per cent decline in gross domestic product (GDP) between October and December 2023 by the Office for National Statistics (ONS) on Thursday.
The revealed figures indicate that the UK has entered a technical recession, defined by two consecutive quarters of falling GDP, marking the first occurrence since the pandemic-induced recession in the first half of 2020. This development poses a challenge for Prime Minister Sunak, who has prioritized economic growth among his five key objectives. Notably, most economists had projected only a 0.1 per cent decline in GDP.
Chancellor Jeremy Hunt, in response to the low economic growth, emphasized the need to “stick to the plan,” which involves cutting taxes on work and business to fortify the economy, despite acknowledging the challenging times for many families. Labour’s shadow chancellor, Rachel Reeves, criticized Sunak’s economic promises, stating, “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.”
Reeves asserted that the economic downturn is now associated with Rishi Sunak, and the news is deeply concerning for families and businesses across Britain. She called for a change, advocating for an election to provide the British people with the opportunity to vote for a transformed Labour Party with a long-term plan focused on more jobs, increased investment, and reduced bills. According to Reeves, only Labour has a comprehensive strategy to restore Britain’s future.