0% GDP growth shows there is ‘no room for complacency’, says Chancellor Jeremy Hunt
The chancellor has told Sky News there is “no room for complacency” in tackling the UK’s economic problems after official figures revealed no GDP growth in February.
But Jeremy Hunt said that while inflation was too high and growth too low, he was confident that his budget plans unveiled last month would help turn things around.
His comments came after the Office for National Statistics (ONS) reported the UK’s gross domestic product – the total value of all good and services produced in the country – flatlined at 0% in February.
This was worse than the 0.1% growth predicted by economists in a poll for Reuters.
The figures follow a rebound of 0.3% growth in January and the confirmation the UK economy avoided recession in the second half of 2022, which raised hopes for a better-than-expected financial outlook this year.
The chancellor, speaking to Sky’s Ed Conway at an International Monetary Fund (IMF) summit in Washington DC, said: “The growth numbers show there is absolutely no room for complacency. Inflation is higher than we want, growth is lower than we want.
“That’s why we’ve put in place a very clear plan in the budget to tackle the two biggest barriers to growth in the economy – businesses not being able to recruit the staff they want… [and] investment by businesses not being as high as we want. So we’ve put in measures to deal with that.”
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Why no economic growth is a problem
The chancellor added: “But when it comes to the longer-term prospects of the economy, [what] I’m hearing from my finance minister colleagues here in Washington is confidence in the resilience of the British economy – a belief that we’re on the right track.
“And when you look at the industries of the future – technology, life sciences – these are areas where the UK is very, very strong, and that is very encouraging for us in the longer-term.”
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Earlier Labour’s shadow chancellor Rachel Reeves described growth as being “on the floor” and hit out at Mr Hunt’s approach.
And David Bharier, from the British Chambers of Commerce (BCC), also expressed concerns at what he called “stubbornly low” growth.
“The government has not addressed some of the major issues holding firms back, such as the unprecedented energy price shock and record tightness in the labour market,” he added.
UK
Epping council demands government ‘immediately’ close asylum hotel – as Home Office works to ‘restore order’
Epping council has unanimously voted to urge the government to shut a hotel housing asylum seekers after a series of protests.
Epping Forest District Council in Essex passed a motion calling for the Bell Hotel to be “immediately and permanently” closed “for the purposes of asylum processing”.
Several demonstrations have been held outside the hotel since 13 July, after an asylum seeker was charged with allegedly attempting to kiss a 14-year-old girl.
Police have arrested 18 people and charged nine in connection with the protests.
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Eight officers injured during migrant protest
Hadush Gerberslasie Kebatu, 38, from Ethiopia, denied sexually assaulting the 14-year-old girl at Chelmsford Magistrates’ Court last week and will stand trial in August.
The Essex Police, Fire and Crime Commissioner has also reportedly urged the home secretary to review the use of the hotel for housing asylum seekers.
In a letter to Yvette Cooper, Roger Hirst said the hotel is unsuitable for housing migrants and is “clearly creating community tension”, the Telegraph reported.
Protests in Epping turned violent last week
Home Office ‘working to restore order’
The Home Office has vowed to “restore order,” threatening on Friday to make asylum seekers homeless if they refuse a change of accommodation.
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It said a new “failure to travel” policy is looking to tackle “non-compliance by asylum seekers” and will ensure individuals who are moved from hotels to suitable alternative accommodation must take it.
Those who refuse to move without a valid reason will now risk losing their housing and support, the Home Office said.
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Epping migration protest in focus
Dame Angela Eagle, minister for border security and asylum, said: “We are working to close hotels, restore order, and put fairness and value for money at the heart of our asylum system.
“This government is making those necessary decisions to protect the taxpayer and uphold the integrity of our borders.”
Asked specifically about the Epping Forest District Council vote, the Home Office said: “We’ll continue to work closely with local police and community partners, in Epping and across the country, as we fix this broken system.”
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Eight officers injured
Protests outside the Bell Hotel last Thursday began peacefully but escalated into what police described as “scattered incidents of violence,” leaving eight officers injured.
Police are braced for further protests, vowing to act swiftly if unrest spreads.
UK
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The actor who played PC Reg Hollis in hit TV series The Bill has been praised by officers after helping them arrest a shoplifter.
Jeff Stewart stepped in when a thief attempted to escape on a bicycle in Southampton on Wednesday.
In a statement, a Hampshire Constabulary spokesman said: “The thief, 29-year-old Mohamed Diallo, fell off the bike during his attempts to flee, before officers pounced to make their arrest.
“To their surprise, local TV legend Jeff Stewart, who played PC Hollis for 24 years in The Bill, came to their aid by sitting on the suspect’s legs while officers put him in cuffs.
(L-R) Jeff Stewart, Roberta Taylor, Mark Wingett, Trudie Goodwin and Cyril Nri celebrating The Bill’s 21st anniversary in 2004. Pic: PA
“In policing you should always expect the unexpected, but this really wasn’t on The Bill for this week.”
The Bill was broadcast on ITV between 1984 and 2010 and featured the fictional lives of police officers from the Sun Hill police station in east London.
Mr Stewart, who was among the original cast, appeared in more than 1,000 episodes as PC Hollis.
Police released footage showing their pursuit of a shoplifter in Southampton. Pic: Hampshire Constabulary
As the suspect falls to the floor, PC Hollis (aka Jeff Stewart) sits on his legs. Pic: Hampshire Constabulary
In praising Mr Stewart’s actions, the force said: “Long since retired from Sun Hill station – but he’s still got it.”
Police from the Bargate Neighbourhoods Policing Team were alerted by staff at a Co-op store in Ocean Way to a suspected shoplifter on Wednesday.
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Mohamed Diallo, 29, of Anglesea Road, Southampton, was subsequently charged with five offences of theft relating to coffee, alcohol and food from the Co-op and two other Sainsbury’s stores on three dates in April and July.
He pleaded guilty at Southampton Magistrates’ Court on Thursday and was bailed to be sentenced on August 29.
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