General Election 2024: UK economy flatlines in April, official figures show

Published

10 months ago

June 12, 2024

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The UK economy flatlined in April, according to official figures that have been seized on by the government’s critics as evidence the Conservatives’ heralded plan is not working.

The Office for National Statistics (ONS) said there was zero growth in April compared to the 0.4% figure recorded during March.

A Reuters news agency poll of economists had predicted the 0% performance given earlier evidence that wet weather had knocked retail sales and construction output particularly hard.

The GDP (gross domestic product) report from the ONS – the last to be released ahead of the election – showed UK overall rainfall at 155% of the long-term average in April.

Construction output was found to have declined by 1.4% as a result, the number crunchers said, also aided by poor demand for construction products in the manufacturing sector.

Production was down by 0.9% while the services sector – accounting for almost 80% of UK total output – grew by just 0.2%.

Despite the emphasis on the hit from rain, the numbers still represent a setback for Prime Minister Rishi Sunak’s key election argument that the economy is improving after successive hits from the COVID pandemic followed by the cost of living crisis.

The UK exited a short-lived recession at the end of 2023 when growth of 0.6% was registered in the first quarter of the current year.

While economists continue to see growth in the three months to June, expectations are for growth of around 0.3% – half the rate achieved between January and March.

Ahead of polling day on 4 July, there will be a final set of inflation figures followed, the next day, by a Bank of England interest rate decision.

Financial markets and economists see little chance of a rate cut on 20 June, largely because wages are growing at a pace that risks stoking price growth further after significant progress in the battle against inflation.

The consumer prices index measure currently stands at 2.3% and is expected to ease further when the figures for May are released.

Chancellor Jeremy Hunt said: “There is more to do, but the economy is turning a corner and inflation is back down to normal.”

He added that the Conservatives would “keep the economy growing with our clear plan to cut taxes on work, homes and pensions”.

But shadow chancellor Rachel Reeves said of the ONS data: “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.

“We are now in the third week of this general election campaign and in that time the Labour Party has set out its plan to grow the economy by bringing back stability, unlocking private sector investment and reforming our planning system.

“All the Conservatives are offering is more of the same, with a desperate wish list of unfunded spending promises that will mean £4,800 more on people’s mortgages. Rishi Sunak’s plan is a recipe for five more years of Tory chaos.”

Liberal Democrat Treasury spokeswoman Sarah Olney said the lack of growth in April showed the Tories had “utterly failed” to deliver on their promises.

“As Rishi Sunak’s time as prime minister peters out, so does the UK’s economic growth,” she said.

“The Conservatives have utterly failed to deliver the growth they repeatedly promised, instead presiding over stagnation and economic misery for hardworking families across the country.

“The Conservatives’ manifesto shows they simply lack the ambition and vision to get the economy moving again.

“It’s clear for voters across the country that the only way to make it happen is to vote them out of office on July 4.”

Yael Selfin, chief economist at KPMG UK, said of the outlook: “Forward-looking indicators point to renewed momentum in activity over the coming months, supported by an improvement in consumer sentiment as pay growth remains strong.

“The early summer general election could help resolve political uncertainties which could provide a boost for business investment.

“Nonetheless, whichever party wins the election will have to contend with a number of supply-side challenges which will constrain the UK’s long-term growth potential.

“We expect economic activity to remain sluggish in historical terms this year with growth at just 0.5%.”

UK

It’s become almost impossible to book a driving test, instructors say

Published

2 hours ago

April 5, 2025

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It's become almost impossible to book a driving test, instructors say

It has become almost impossible to book a driving test on the government website due to bots on the booking system, driving instructors have told Sky News.

The only official way to book a practical car driving test is through the Driver and Vehicle Standards Agency (DVSA) website.

New test slots are released by the DVSA at 6am every Monday, but “no matter how fast I am, there’s nothing available”, said Aman Sanghera, a driving instructor based in west London.

When asked about the cause, she said: “All of the tests are taken by bots, they are definitely taking over the booking system.”

In this context, bots are automated software designed to mimic human behaviour and programmed to carry out actions like searching for and reserving driving test appointments on the official government website much faster than humans can.

Individuals and companies use bots to block-book driving test slots and then resell them at a profit, which is not illegal, although it is a violation of the DVSA’s terms of use.

Recent data shows the DVSA has closed over 800 business accounts for misuse of its booking service in the past two years.

Ms Sanghera, who has been in the trade for over a decade, said the usage of bots started a few months ago “but is now getting out of hand”.

She said: “I’ve actually heard about driving instructors being approached by certain individuals to then take on their IDs to log in and to run this scam.

“I struggle to actually book a test for my students, which means that by the time my students are logging in, they’ve got no chance.”

Driving instructors can book driving tests on behalf of their pupils using a dedicated service, allowing them to bypass the general queue and potentially secure test slots more efficiently.

As a result, Ms Sanghera said students are “forced to go to third-party sites” to secure “the same test dates which are then available later on during the day at a premium rate of like £200-£300”.

She added: “Given that the DVSA is a government-regulated body, one would expect a more robust and fair system to ensure affordability and accessibility for all candidates.”

The standard test fee is £62, offered by the DVSA, which is responsible for carrying out driving tests in Great Britain.

The biggest concern for the driving instructors Sky News has spoken to, including Ms Sanghera, is “the fact that students are being exploited”.

When Ahmed Ali struggled to find a practical test on the DVSA website, he turned to third-party sites – a decision he now regrets.

He said: “I’ve spent about £650 on driving tests, and I’ve sat zero tests. I’ve given all this money to third-parties that look for cancellations so they could try to get you a faster test.”

But the 20-year-old said that despite making the payments, he “didn’t hear back from them again”, which is illegal.

“When you lose all that money, you get to a point where you can’t really afford to find another driving test,” he said.

“I just feel very frustrated because I’ve spent all this money, all this time into driving, and I haven’t sat a single driving test.”

The DVSA urged applicants to only book tests via the official Gov.uk website and told Sky News it “deploys enhanced bot protection to help stop automated systems from buying up tests unfairly”.

“These applications, however, are constantly evolving and changing, and DVSA’s work on this is ongoing,” it said.

From Tuesday, the DVSA will require learner drivers to provide 10 full working days’ notice to change or cancel their car driving test without losing the test fee, up from the current three days.

Also part of the DVSA’s crackdown to reduce waiting times is a consultation expected to launch in spring 2025 “to streamline the driving test booking process” and “tighten terms and conditions”.

UK

Russell Brand charged with rape and sexual assault

Published

16 hours ago

April 4, 2025

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Russell Brand has been charged with rape and two counts of sexual assault between 1999 and 2005.

The Metropolitan Police say the 50-year-old comedian, actor and author has also been charged with one count of oral rape and one count of indecent assault.

The charges relate to four women.

He is due to appear at Westminster Magistrates’ Court on Friday 2 May.

Police have said Brand is accused of raping a woman in the Bournemouth area in 1999 and indecently assaulting a woman in the Westminster area of London in 2001.

He is also accused of orally raping and sexually assaulting a woman in Westminster in 2004.

The fourth charge alleges that a woman was sexually assaulted in Westminster between 2004 and 2005.

Police began investigating Brand, from Oxfordshire, in September 2023 after receiving a number of allegations.

The comedian has previously denied the accusations, and said all his sexual relationships were “absolutely always consensual”.

Met Police Detective Superintendent Andy Furphy, who is leading the investigation, said: “The women who have made reports continue to receive support from specially trained officers.

“The Met’s investigation remains open and detectives ask anyone who has been affected by this case, or anyone who has any information, to come forward and speak with police.”

UK

Last UK blast furnaces days from closure as Chinese owners cut off crucial supplies

Published

23 hours ago

April 4, 2025

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Last UK blast furnaces days from closure as Chinese owners cut off crucial supplies

The last blast furnaces left operating in Britain could see their fate sealed within days, after their Chinese owners took the decision to cut off the crucial supply of ingredients keeping them running.

Jingye, the owner of British Steel in Scunthorpe, has, according to union representatives, cancelled future orders for the iron ore, coal and other raw materials needed to keep the furnaces running.

The upshot is that they may have to close next month – even sooner than the earliest date suggested for its closure.

The fate of the blast furnaces – the last two domestic sources of virgin steel, made from iron ore rather than recycled – is likely to be determined in a matter of days, with the Department for Business and Trade now actively pondering nationalisation.

The upshot is that even as Britain contends with a trade war across the Atlantic, it is now working against the clock to secure the future of steelmaking at Scunthorpe.

The talks between the government and Jingye broke down last week after the Chinese company, which bought British Steel out of receivership in 2020, rejected a £500m offer of public money to replace the existing furnaces with electric arc furnaces.

The sum is the same one it offered to Tata Steel, which has shut down the other remaining UK blast furnaces in Port Talbot and is planning to build electric furnaces – which have far lower carbon emissions.

However, the owners argue that the amount is too little to justify extra investment at Scunthorpe, and said last week they were now consulting on the date of shutting both the blast furnaces and the attached steelworks.

Since British Steel is the main provider of steel rails to Network Rail – as well as other construction steels available from only a few sites in the world – the closure would leave the UK more reliant on imports for critical infrastructure sites.

However, since the site belongs to its Chinese owners, a decision to nationalise the site would involve radical steps government officials are wary of taking.

They also fear leaving taxpayers exposed to a potentially loss-making business for the long run.

The dilemma has been heightened by the sharp turn in geopolitical sentiment following Donald Trump’s return to the White House.

The incipient trade war and threatened cut in American support to Europe have sparked fresh calls for countries to act urgently to secure their own supplies of critical materials, especially those used for defence and infrastructure.

Gareth Stace, head of UK Steel, the industry lobby group, said: “Talks seem to have broken down between government and British Steel.

“My advice to government is: please, Jonathan Reynolds, Business Secretary, get back round that negotiating table, thrash out a deal, and if a deal can’t be found in the next few days, then I fear for the very future of the sector, but also here for Scunthorpe steelworks.”

British Steel declined to comment.