THE OBSERVER: Amid sluggish UK productivity and global insecurity, pulling closer to Europe is diplomatically and economically vital
Achieving the fastest sustainable growth in the G7 was the Labour party’s highest-profile pledge going into the general election last July. Chancellor Rachel Reeves has said that boosting growth is “at the heart of everything she does”. But there was concerning news last week with new figures showing the economy grew by just 0.1% in the three months to the end of September, falling significantly short of expectations.
Some business leaders have linked this anaemic growth to uncertainty in the run-up to last month’s budget. But it will largely still be a product of factors outside the new chancellor’s control, including the decisions of the last Conservative government.
It is nevertheless disturbing news for Labour as well as for the country. The Resolution Foundation forecasts disposable household income per person is forecast to rise by just 0.5% a year on average over the course of this parliament. The results of the US election sound an important alarm bell about the extent to which voters are willing to punish incumbent centre-left governments for failing to deliver noticeable increases in living standards. » | Observer editorial | Saturday, November 16, 2024
