UK economy flatlines in April in crippling blow for Rishi Sunak

12 June 2024 , 07:45

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The UK economy failed to grow in April (Image: Getty Images)

The economy stalled in April, figures revealed, in another crippling blow to the Tories’ election hopes.

Rishi Sunak has clung onto tentative signs of growth earlier in the year to claim the country has “turned a corner”. The Prime Minister even claimed the economy was “going gangbusters”. But data from the Office for National Statistics today confirmed the economy didn’t grow at all in April.

The reading is yet another setback for Mr Sunak as he attempts to reboot his faltering election campaign. Another will come next week with the Bank of England expected to freeze interest rates again. The Conservatives were desperately gambling on a rate cut to boost voters’ finances as the country heads to the polls.

TUC General Secretary Paul Nowak claimed the Tories had turned Britain into a “stagnation nation.” April’s flatlining economy marked a slowdown from growth of 0.4% in March and was dragged down by weaker-than-usual retail sales over Easter and a fall in construction output.

Rishi Sunak unveiled the Conservative Party manifesto this week (Jonathan Buckmaster)

Labour’s Shadow chancellor Rachel Reeves said: “Rishi Sunak claims we have turned a corner, but the economy has stalled and there is no growth. These figures expose the damage done after 14 years of Conservative chaos.”

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Mr Nowak said: “Our economy is slowing yet again. This has been the worst government for growth in modern times – and working people have paid the price. Real wages are still worth less than 2008. Unemployment is rising at the fastest rate in the G7. And economic inactivity is at record levels.

“The Conservatives can spin all they like. But the last 14 years have been dismal for growth and living standards. They have turned Britain into a stagnation nation.” Think tank the Resolution Foundation warned the latest data served a reminder to whoever wins the next election that their key goal must be to end Britain’s economic stagnation.

It said gross domestic product per capita – which tracks living standards most closely – has grown by just 4.3% in total during the 16 years since the financial crisis, compared to 46% in the 16 years prior to that. James Smith, research director at the Resolution Foundation, said: “After a strong start to the year, falling retail sales and contracting manufacturing output have brought growth to a halt in April.

“The latest data offers a snapshot of Britain’s wider growth challenge, and should remind politicians that ending stagnation should be the central task of whoever wins the next election.”

Graham Hiscott