Chancellor Rachel Reeves has officially responded to this morning’s GDP data, describing it as “positive”.
The economy showed growth of 0.3% in the second quarter, less than half of the growth (0.7%) in the first quarter.
Reeves’ reaction to the data has been promptly lambasted, with one expert saying it is “delusional”.
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In a post on X, Rachel Reeves said: “Today’s economic figures are positive with a strong start to the year and continued growth in the second quarter.
“But I know there is more to do to deliver an economy that works for working people – and rewards working people.”
Michelle Lawson, Director at Fareham-based Lawson Financial, was excoriating in her response: “Delusional, desperate and done. The idea here is keep being positive and eventually the public will believe you.
“Most people know the economic situation is dire and far from where it needs to be, almost at a point that it is irrecoverable. Good and otherwise viable businesses are closing and people are struggling.
“The daily slog and grind is wearing people down. Action is needed and fast, but so is honesty.”
David Belle, Founder at Fink Money, said the writing is on the wall for the economy: “Our employment situation is deteriorating fast and the writing is on the wall for where we are likely to end up by the year end because of this Government’s policies.
“Fewer people working with more people on benefits, including 600,000 graduates, doesn’t reflect an economy that is growing. What concerns me here is that Reeves is still under the illusion that we have seen the full hit of the increased Employers’ National Insurance contributions increase.
“We have not, and this will still come to feed through when we reach firms’ decisions on what their budgets look like for 2026.”
Patricia McGirr, Founder at Burnley-based Repossession Rescue Network, also said the Chancellor’s verdict is out of sync with a reality where businesses are being strangled: “Small businesses are closing their doors while Rachel Reeves insists she is building an economy for working people. You do not reward working people by wrecking the businesses that pay their wages.
“A 0.3% rise is not momentum. Until small businesses can breathe again, this economy will keep coughing and spluttering, no matter how much spin the Chancellor puts on it.”
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