Flatlining growth shows need for a radical rethink at the Budget

Flatlining growth shows need for a radical rethink at the Budget

Growth Commission member Douglas McWilliams has issued the following response to the GDP figures for the third quarter of 2025 that have been issued this morning:

“Quarterly GDP growth in Q3 is officially estimated to have fallen to 0.1% from 0.3% in Q2, while GDP per capita growth for the quarter – the best measure of overall living standards – is officially estimated to have fallen to 0.0%. Given that the ONS admits its GDP per capita is based on old forecasts from 2022 which almost certainly underestimate population growth, the already depressing 0.0% figure is likely to be an overestimate.

“The stark reality of growth grinding to a halt is bad news for Rachel Reeves as she prepares her Budget. It should prompt alarm bells to ring in the Treasury that her current approach is failing to deliver growth and a radical rethink is required.

“On 20th November The Growth Commission will present its Growth Budget showing what the Chancellor needs to do to transform the country’s growth prospects. She ignores this at her peril.”

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