No 10 insists UK economy is strong despite IMF warning it will fare worse than any other in developed world – including Russia
Downing Street has insisted that the UK’s economy is strong despite the International Monetary Fund’s warning that Britain’s economy will go into reverse this year and will fare worse than all other advanced nations.
In its latest World Economic Outlook update, the IMF downgraded its UK gross domestic product (GDP) forecast once again, predicting a contraction of 0.6% against the 0.3% growth pencilled in last October.
The outlook for the year ahead puts the UK far behind its counterparts in the G7 group of advanced nations.
IMF’s dire outlook for UK economy is ‘wrong’ – politics latest
The UK is also expected to be the only country – across advanced and emerging economies – to suffer a year of declining GDP.
But the PM’s official spokesman told reporters the IMF itself “said that UK economic policy is now on the right track”.
The spokesman added that the UK outperformed many forecasts last year and was “predicted to grow faster than Germany and Japan over the coming years”.
But shadow chancellor Rachel Reeves said the government needs to do “so much more” to fulfil the potential of the UK economy.
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Asking an urgent question on the IMF’s economic outlook update in the Commons, Ms Reeves said: “Britain has huge potential but 13 years of Tory failure has been a drag anchor on prosperity.
“Today’s IMF assessment holds a mirror up to the wasted opportunities and it is not a pretty sight.
“The UK is the only major economy forecast to shrink this year. Weaker growth compared to our competitors for both of the next two years.
“The world upgraded, Britain downgraded. Growth even worse than sanctions-hit Russia.”
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‘It’s bad news for UK economy’
Taking aim at Chancellor Jeremy Hunt who was not in attendance, she added: “If the chancellor had ideas, answers or courage, he would be here today. But he is not.”
Ms Reeves continued: “The question people are now asking is this: are me and my family better off after 13 years of Tory government? The answer is no. And as the IMF show today, it doesn’t have to be this way.”
Transport minister Richard Holden said IMF forecasts were wrong ‘in the last couple of years’
Earlier on Monday, transport minister Richard Holden disputed the IMF’s forecast.
Asked if the IMF is wrong, Mr Holden told Sky News: “I think so.”
He added that the IMF has got its forecasts wrong “in the last couple of years”, and that he thinks “Britain can outperform its prediction like it has done for the last two years”.
The Conservative minister told Kay Burley that the UK economy has “grown faster than Germany since 2016” and “grown faster than France, Italy, and Japan since 2010”.
Mr Holden also said the body’s report “praised” the actions Chancellor Jeremy Hunt and Prime Minister Rishi Sunak have taken to try to stabilise the country’s finances.
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Truss grilled over dire economic forecast
Former cabinet minister Jacob Rees-Mogg agreed with Mr Holden, telling Sky News his earlier remarks about the IMF were “sheer genius”.
“Well, first of all, this is a forecast,” Mr Rees-Mogg said.
“And when was the IMF forecast last right? So you’ve got to understand that forecasts are not historic fact.”
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Responding to the IMF’s latest economic outlook earlier on Tuesday, the chancellor said “these figures confirm we are not immune to the pressures hitting nearly all advanced economies”.
“Short-term challenges should not obscure our long-term prospects – the UK outperformed many forecasts last year, and if we stick to our plan to halve inflation, the UK is still predicted to grow faster than Germany and Japan over the coming years,” he said in a statement.
Counter-terrorism police are investigating after an incident involving a crossbow and a firearm left two women injured in Leeds.
Police were called to Otley Road at 2.47pm on Saturday to reports of a “serious incident involving a man seen with weapons”, West Yorkshire Police said.
Officers arrived at the scene to find two women injured – and a 38-year-old man with a self-inflicted injury. All three were taken to hospital, with the man held under arrest, but their injuries are not believed to be life-threatening.
“Two weapons have been recovered from the scene, which were a crossbow and a firearm,” Counter Terrorism Policing North East said in a statement.
The incident happened on the ‘Otley Run’ pub crawl, with one venue saying it was closed for the evening due to “unforeseen circumstances”.
Officers guard one of the crime scenes
Officers inside the cordon in Leeds
Counter Terrorism Policing’s statement added: “Due to the circumstances surrounding the incident, Counter Terrorism Policing North East have taken responsibility for leading the investigation with the support of West Yorkshire Police.
“Extensive enquiries continue to establish the full circumstances and explore any potential motivation.”
Home Secretary Yvette Cooper described it as a “serious violent incident” and said she was being kept updated by police.
“Thank you to the police and emergency services for their swift response,” she said. “My thoughts are with the victims and all those affected by this attack.”
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Wrexham AFC have been promoted for the third season in a row.
The North Wales-based side has gone from the National League to the Championship in just three seasons, under its Hollywood owners Ryan Reynolds and Rob McElhenney.
Wrexham were second in the table and had a run of eight games unbeaten ahead of their match against Charlton Athletic on Saturday, which they won 3-0.
Wrexham’s James McClean lifts the League One trophy. Pic: PA
Wrexham’s Dan Scarr celebrates with the fans on the pitch after Wrexham won promotion to the Championship. Pic: PA
It is the first time any club has been promoted for three consecutive seasons within the top five tiers of English football.
The third oldest association football club in the world, Wrexham AFC was bought by Reynolds and McElhenney in 2020, and has since been the subject of a Disney+ documentary, Welcome To Wrexham.
Reynolds, wearing a Wrexham sweatshirt, and McElhenney were pictured celebrating each goal, and after the game, as the fans came onto the pitch at the SToK Cae Ras (Racecourse Ground) to celebrate the victory with the players.
Wrexham co-owners Rob McElhenney (L) and Ryan Reynolds and Ryan’s wife Blake Lively, before the match. Pic: PA
Both stars came onto the pitch after the supporters returned to the stands.
Speaking to Sky Sports, McElhenney praised those behind the scenes, referring to “so many that don’t get the credit they deserve, people who aren’t talked about”.
Reynolds said bringing success back to the club “seemed like an impossible dream” when they arrived in North Wales in 2020.
Wrexham’s Sam Smith celebrates in front of the fans after Wrexham won promotion to the Championship. Pic: PA
He put the three promotions down to “the coaching staff, the greatest dressing room” and an “all for one, one for all” attitude throughout the club, adding he was “speechless with their commitment and their emotion”.
As for the mouth-watering prospect of another promotion to the promised land of the Premier League, the pair agreed it was “for tomorrow”, before ending the interview with a joint mic-drop.
Veteran striker Steven Fletcher said, “as soon as I came to this club, I knew it was something special. We want to go again. We’ll reset in the summer, take a break and go again”.
“It has been a success.”
Just Stop Oil (JSO) insists it’s been “successful” – as its members ceremoniously hang up their orange high-vis vests during a march in central London.
Since the group formed three years ago, it’s drawn attention and criticism for its colourful, controversial protests, which ranged from disrupting sporting events to throwing soup on Vincent van Gogh’s Sunflowers, and climbing on gantries over the M25. It sprayed orange paint over Stonehenge, and cost police forces tens of millions of pounds.
Those days are now behind it; to the relief of many.
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As a few hundred activists marched through London on Saturday, blocking roads as they went; taxi drivers blared their horns and football fans shouted abuse from the pavement.
The PA News Agency filmed the moment a white minivan seemed to drive towards a group of protesters blocking the road.
Protesters shouted “I’m being pushed back!” to police, while the driver could be heard shouting “What about my right to get home?” to the officers gathered.
But JSO never set out to be popular. And it believes its tactics – though hated – have been successful; thanks to the new Labour government’s commitment to not issue new oil or gas exploration licences.
That’s why, it says, its ceasing direct action.
JSO hangs up its high-vis jackets in central London on Saturday
A washing line of high-vis jackets signifies JSO’s disbanding
“This moment marks the success of the JSO campaign – our demand was to end new oil and gas licences and that is now government policy.
“As a result of which four billion barrels of oil are being kept under the North Sea. The campaign has reached a natural end.”
Dr Oscar Berglund, senior lecturer in international public and social policy, disagrees that JSO is disappearing because it’s been “successful”.
He told Sky News policing strength and public perception might have more to do with it.
“They have very low levels of popularity. About 17% of the British population are kind of broadly supportive of what Just Stop Oil do. And that’s too low to recruit.
“It’s difficult to recruit members to something that is that unpopular, and then that a lot of people for good reason I think have kind of stopped believing in that kind of disruption as a means to achieve meaningful change.”
Group triggers specific new protest laws
One thing it did change is the law.
Policing commentator Graham Wettone tells us: “Obstruction of the highway, obstruction of rail networks for example, these are specific offences now.
“It’s given the police more tactics, more methods, more offences they can consider, even stopping and searching somebody who may have something to either lock themselves on or glue themselves to something.”
A JSO activist holds a picture of an imprisoned colleague
Emma Smart was held in prison for her activism with both Insulate Britain and Just Stop Oil.
“The high-vis might be going away,” she tells me, “but we aren’t.”
“These people aren’t going anywhere, we are still committed, dedicated, terrified by the failings of this government and governments around the world.”
JSO activists throw orange paint at van Gogh’s sunflowers
Orange smoke set off by JSO protesters at Stonehenge
She hopes for a time of reflection before it returns in a new form but says the need for climate activism is stronger than ever.
She also believes that while most people dislike JSO tactics, it still raises awareness of the cause and might even push people to more moderate campaign groups.
Just Stop Oil came behind other, similarly controversial climate campaign groups like Insulate Britain and Extinction Rebellion, and as it says goodbye, its disruptive methods have been seized upon by other organisations like the Pro-Palestinian Youth Justice.
The infamous Just Stop Oil orange vests might be going away, but the individual activists, their cause and campaign tactics feel here to stay.
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