Rolling coverage of the latest economic and financial news
- BREAKING: UK GDP rose just 0.1% in July
- Service sector and manufacturing stalled
- ONS: staff shortages a factor
- Construction output fell as firms struggle to source raw materials
- Introduction: UK’s July GDP report
Bridget Phillipson MP, Labour’s Shadow Chief Secretary to the Treasury, says the government is complacent about the UK’s economic recovery.
She warns that the imminent £20-per-week cut to universal credit payments will hurt consumer spending, and that increasing national insurance contributions to raise £12bn for the NHS and social care will be a tax on jobs.
“People are working incredibly hard to build the recovery but Conservative complacency is holding our country back. The concerning figures today show that just as the UK economy ought to be getting back to normal, disruption to supply chains and other shortages mean our recovery is hitting the brakes.
“The Government has no plan, other than to plough ahead with a tax on jobs as well as a devastating cut to Universal Credit, taking money out of our high streets just when it is needed most.
Despite growth slowing to a near-standstill in July, chancellor of the exchequer, Rishi Sunak, insists the recovery is “well underway”:
“Our recovery is well underway thanks to the success of the vaccination rollout and the roadmap, with more employees on payrolls that at any point since last March.
“I am confident that – supported by our Plan for Jobs – we’ll continue to recover from the pandemic, we’ll see more new jobs, and we will Build Back Better.”