UK’s economy shrinks unexpectedly by 0.1% in October
GuardianDec 13
UK: Economy Shrinks for Second Consecutive Month
Above: Rachel Reeves, UK chancellor of the exchequer, during the annual Confederation of British Industry conference in London, UK, on Nov. 25, 2024. Image copyright: Chris Ratcliffe/Contributor/Bloomberg via Getty Images
The Facts
The UK economy shrank by 0.1% in October, marking the second consecutive monthly decline following a similar contraction in September.
The economic data was collected in the weeks leading up to Chancellor Rachel Reeves's Oct. 30 budget announcement, which included £40B ($50B) in tax increases.
The Spin
Left narrative
Labour's economic policies deserve recognition for their long-term vision and focus on sustainable growth. Rather than relying on quick fixes, Labour aims to tackle the structural issues that will establish a foundation for future prosperity. While GDP often makes headlines, it doesn't fully capture the overall well-being of the public. By prioritizing disposable income, housing security, and living standards, Labour demonstrates a commitment to meaningful and inclusive progress — rather than merely chasing statistical wins.
Right narrative
Labour's economic policies seem to be faltering, as the country experiences a second consecutive month of contraction. Despite promises to lead the G7 in growth, the economy has stagnated and declined since Labour took office. Reeves' budget has heightened uncertainty, prompting businesses to delay spending and leading to a significant drop in confidence. With industries ranging from manufacturing to construction in decline, Labour's strategy of tax increases and cautious rhetoric appears to be worsening the downturn rather than promoting recovery.