Latest hit to growth ‘tragically yet entirely predictable’

Growth Commission member Ewen Stewart has issued the following response to the GDP figures for October that have been issued this morning:

“The UK economy continues to fail. Today’s GDP figures for the three months to the end of October show the UK economy in decline: production fell by 0.5%, impacted by the continuing self-inflicted decline in the motor industry, while services fell by 0.2% and construction by 0.3%.

“These latest statistics take no account either of the measures announced in the Budget or the Employment Rights Bill, both of which will be a further drag on future growth.

“Ultimately this continuing major underperformance is tragically yet entirely predictable as a result of squeezing the private sector through regulation and high taxes to fund a largely unproductive public sector and increasing debt.

“The Government really has to change course. The control of public spending with efficiencies recycled into tax cuts is now an urgent task if we are to avoid a doom loop of ever rising taxes to fund a failing state.”