General Election 2024: UK economy flatlines in April, official figures show
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.
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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.
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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.
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UK economy flatlines in April
“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.”
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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%.”
Conservative Party leader Kemi Badenoch has called on Sir Keir Starmer to sack Treasury minister Tulip Siddiq over allegations she lived in properties linked to allies of her aunt, Sheikh Hasina, the deposed prime minister of Bangladesh.
It comes after the current Bangladeshi leader, Muhammad Yunus, said London properties used by Ms Siddiq should be investigated.
He told the Sunday Times the properties should be handed back to his government if they were acquired through “plain robbery”.
Tory leader Ms Badenoch said: “It’s time for Keir Starmer to sack Tulip Siddiq.
“He appointed his personal friend as anti-corruption minister and she is accused herself of corruption.
“Now the government of Bangladesh is raising serious concerns about her links to the regime of Sheikh Hasina.”
Ms Siddiq insists she has “done nothing wrong”.
Her aunt was ousted from office in August following an uprising against her 20-year leadership and fled to India.
Ms Siddiq is also named with her aunt in Bangladesh court documents about meetings with the Russian government.
Tory leader Kemi Badenoch has called on Sir Keir to sack the minister
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As economic secretary to the Treasury, Ms Siddiq is responsible for policy on both the City and tackling corruption.
She referred herself to the prime minister’s ethics watchdog on Monday following the reports about the properties.
On the same day, the prime minister said: “Tulip Siddiq has acted entirely properly by referring herself to the independent adviser, as she’s now done, and that’s why we brought into being the new code.
“It’s to allow ministers to ask the adviser to establish the facts, and yes, I’ve got confidence in her, and that’s the process that will now be happening.”
Police in Aberdeen have widened the search area for two sisters who disappeared four days ago in the city.
Eliza and Henrietta Huszti, both 32, were last seen on CCTV on Market Street after leaving their home on Tuesday at around 2.12am.
The sisters – who are part of a set of triplets and originally from Hungary – crossed the Victoria Bridge to the Torry area and turned right on to a footpath next to the River Dee.
Eliza and Henrietta Huszti were last seen on CCTV in Market Street. Pic: Police Scotland/PA
They headed in the direction of Aberdeen Boat Club but officers said there is no evidence to suggest the missing women left the immediate area.
Specialist search teams, police dogs and a marine unit have been trying to trace the pair.
The sisters crossed Victoria Bridge before walking along a footpath next to the River Dee
The pair were heading in the direction of Aberdeen Boat Club on the south side of the River Dee
Further searches are being carried out towards the Port of Aberdeen’s South Harbour and Duthie Park.
Police Scotland said it is liaising with authorities in Hungary to support the relatives of the two sisters.
Chief Inspector Darren Bruce said: “Eliza and Henrietta’s family are understandably extremely worried about them and we are working tirelessly to find them.
“We are seriously concerned about them and have significant resources dedicated to the inquiry.”
The sisters, from Aberdeen city centre, are described as slim with long brown hair.
Henrietta Huszti. Pic: Police Scotland
Eliza Huszti. Pic: Police Scotland
Officers have requested businesses in and around the South Esplanade and Menzies Road area to review their CCTV footage for the early morning of Tuesday 7 January.
Police added they are keen to hear from anyone with dashcam footage from that time.
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