GDP figures belie ‘another quarter of wasted opportunity’ as UK enters GDP per capita recession

Growth Commission member Ewen Stewart has issued the following response to the GDP figures for the final quarter of 2025 that have been issued this morning:

“These latest growth figures belie another quarter of wasted opportunity with UK GDP rising by a minimal 0.1% for the second quarter in a row.

“However, on the more important metric of GDP per capita – the best measure of overall living standards – the number is marginally down for the second quarter in a row. This means we are now formally in a GDP per capita recession.

“Indeed, the trend for GDP per capita now shows a deterioration in the numbers for three successive quarters. This should not come as a surprise because if you increase taxes and make employing people harder through excessive and costly regulation – against a backdrop of increasing and self-inflicted political uncertainty at the heart of government – people will not build homes, invest or expand their businesses.

“On any measure, Britain is underperforming. Sadly Rachel Reeves’ economic decisions are coming home to roost, stifling growth and optimism. And her suggestion yesterday that the UK should pursue further alignment and further integration with the growth-suppressing European Union only goes to underline that her approach to running the economy is deeply misguided.”