The ASI Responds to Latest Growth Figures

Responding to the ONS’ Growth Figures, Maxwell Marlow, Director of Research at the Adam Smith Institute, said:

“These meagre growth figures are disappointing but completely unsurprising. Even worse, GDP per head, which measures our living standards, has actually fallen.

The recent budget has pushed the UK economy in the wrong direction. Rather than cutting government spending and reducing the burdens on businesses and allowing them to flourish, government spending and taxation have increased to an unsustainable level. Many will have to cut jobs or go bust- this will actually reduce the tax take and further depress Brits’ standards of living. 

The government has made some good pro-growth announcements, including the Ox-Cam corridor and airport expansion- but it needs to go for full-fat planning reform. And the Chancellor’s plans will only significantly boost growth if she also grapples with the UK’s tax and spend problem. As a matter of urgency, the Chancellor needs to reverse the National Insurance Tax and Capital Gains Tax hike and allow fracking to go ahead to keep Britain’s energy costs down. She must also significantly reduce government spending, following the example of the US’ DOGE.”

-ENDS-

Notes to editors:

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The Adam Smith Institute is one of the world’s leading think tanks. It was ranked first in the world among independent think tanks and as the best domestic and international economic policy think tank in the UK by the University of Pennsylvania. Independent, non-profit and non-partisan, the Institute is at the forefront of making the case for free markets and a free society, through education, research, publishing, and media outreach.

Maxwell Marlow has published a blog on reports that the Chancellor has run out of the £9 billion spending headroom.