Copy article

How well is the new government handling the economy?

Journalist: Jon King, Daily Express Online

ended 20. September 2024

Borrowing rose to £13.7 billion last month, marking the third highest August on record.

The rise was driven by higher spending on public services due to increased running costs and pay increases.

It means public sector debt hit 100 percent of gross domestic product at the end of August 2024, a level not seen since the early 1960s.

Consumer confidence has also fallen sharply over fears of what might be in Rachel Reeves' budget.

The Daily Express is looking for strong views in about 3 or 4 sentences about how well the new government is handling the economy.

5 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Rohit Kohli
Director at The Mortgage Stop
Since coming into power, Starmer's Labour government has done nothing but be downbeat about the UK economy. Instead of bringing hope and confidence to consumers, they've knocked the wind out of it. They continue to flail about with headline-grabbing ideas but fail to provide any detail on how they plan to deliver. Lacking competence is how I would summarise their performance so far.
Copy

Editor
Riz Malik
Independent Financial Adviser at R3 Wealth
Even though this administration is in its infancy, Labour need to sack their comms team. The mood of the country is not things are getting better but things are going to get worse. The Halloween Budget will be their chance to redeem themselves or show we have the Conservatives 2.0.
Copy

Editor
Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
As consumer sentiment plummets to a six-month low and the UK economy teeters on the brink of a confidence crisis, the impact of Starmer's ominous warning of 'painful' decisions ahead has been significant. Despite inheriting substantial economic challenges, the new government’s handling of the economy has thus far been less than stellar. Honesty and transparency are typically appreciated, however, their doom-laden rhetoric and warnings of tough decisions have done little to inspire confidence. Chancellor Reeves faces the formidable challenge of managing fiscal constraints without further eroding consumer confidence and stifling economic recovery.
Copy

Premium
David Belle
Founder and Trader at Fink Money
This government are handling the economy completely opposite to how they said they would over the past 14 years. This is a big problem. They don't have a growth positive policy and when you are not pro-growth, you hurt the lowest on the ladder. Rather than looking at things like getting rid of the Treasury’s indemnity of Bank of England bond losses, waiting for the bank to normalise interest rates to reduce debt interest spending, or spending on growth, they’re simply focusing on cuts and heightened taxation. The country once again feels rudderless.
Copy

Sam Kirk
Managing Director at J-Flex Rubber Products
Labour would have you believe that they've resolved long-standing issues such as public sector pay disputes, however the reality is that they've just robbed Peter to pay Paul, with several high-profile cuts already announced or proposed.

Their optimisitic election campaign quickly turned to downbeat pessimism, with warnings that things would only get better - and let's not forget we've heard that before with Labour - but not before they get worse.

Whilst many businesses were hopeful of a budget that would revitalise the economy I suspect many are treating this as a damage limitation exercise.