Government decisions are directly undermining the UK’s growth potential – reaction to the latest GDP figures

Growth Commission member Ewen Stewart has issued the following response to the GDP figures for the three months to February 2026 that have been issued this morning:

“Today’s GDP data showing modest growth of 0.5% in the three months to February 2026 is of course welcome, but the underlying position remains parlous. Construction remains in recession and while growth in production slowed from 1.7% to 1.2%, service sector growth at 0.5% was pedestrian.

“This is all against a backdrop of the UK having entered a period of great uncertainty, given the surge in oil prices as a result of events in Iran. Government decisions are directly undermining the UK’s growth potential. The recent Employment Rights Act will further undermine competitiveness in what was already a weakening jobs market, while a lack of energy security and an uncompetitive energy pricing environment is greatly hindering the UK’s potential.

“If the Government wants to prioritise growth, it should be pursuing a twin approach of serious deregulation on the one hand while encouraging North Sea energy exploration via a more competitive tax regime.”