UK economy shrank 0.3% in March, ONS figures show

Published

2 years ago

May 12, 2023

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The UK economy grew slightly in the first three months of the year, according to official figures – but contracted in March.

Growth of 0.1% was recorded by the Office of National Statistics (ONS) in the three months up to March, the lowest amount possible to still be classed as growth as IT and construction sector activity offset the impact of strikes.

However, the economy shrank 0.3% in March as retail and car sales fell sharply, and public sector strikes were more disruptive than February as NHS staff and teachers took to picket lines.

Contraction also came thanks to a 0.5% fall in services production. Distribution and retail also had a poor month as cost of living pressures hit consumers.

Economic research firm Pantheon Macro has pointed out the UK is falling below the G7 group of the world’s largest economies.

“The UK remains the only G7 country in which the main quarterly measure of GDP has not recovered to its pre-COVID peak yet; it still was 0.5% below its Q4 2019 level in Q1,” the Pantheon Macro chief economist said.

“This chiefly reflects weakness in households’ real spending, which was 2.3% below its Q4 2019 level. But at least the magnitude of the underperformance is not increasing relative to other countries in Europe, which have faced a similarly enormous energy price shock,” Samuel Tombs said.

ONS publishes GDP data every month, which stands for gross domestic product and measures the sum total of everything produced in the economy.

Higher economic growth brings increased tax revenues and likely higher incomes and standards of living.

As part of his focus on economic growth, Prime Minister Rishi Sunak says growing the economy will create better-paid jobs and opportunities across the country.

A three-month period, or quarter, of economic growth means the UK is on the path to avoid recession. But the growth recorded is small.

An economy is technically in a recession after two quarters of negative economic growth, though the Bank of England now expects the UK will avoid recession this year.

Today’s announcement followed a flatlining economy in February and growth of 0.5% in January.

In response to the figures, Chancellor Jeremy Hunt said: “It’s good news that the economy is growing but to reach the government’s growth priority we need to stay focused on competitive taxes, labour supply and productivity.

“The Bank of England governor confirmed yesterday that the budget has made an important start but we will keep going until the job is done and we have the high wage, high growth economy we need.”

Rachel Reeves MP, Labour’s shadow chancellor of the Exchequer, responding to the latest GDP forecast today, said: “Labour wants to match the ambition of the British people – while the Tories would rather continue down a path of managed decline of low growth and high taxes.

“Despite our country’s huge potential and promise, today is another day in the dismal low growth record book of this Conservative government.

“The facts remain that families are feeling worse off and we’re lagging behind on the global stage.

“Labour’s mission to secure the highest sustained growth in the G7 will make families across every part of our country better off.”

UK

‘We need help’: Workers say shoplifting is ‘out of control’ as brazen thefts explode

Published

6 hours ago

November 20, 2024

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'We need help': Workers say shoplifting is 'out of control' as brazen thefts explode

A woman casually walks into a convenience store and starts filling a bread crate with goods from one of the aisles.

A shop assistant tries to stop her, but she shrugs him off, undeterred. With the crate now full of items, she leaves without paying.

It is a scenario that is played out day in and day out across Britain, as retailers warn the surge in shoplifting is now “out of control”.

I’m sitting in the security office of a busy city centre shop and I’m watching as a schoolboy walks in and helps himself to a sandwich, stuffing it into his jacket.

Watching with me is shop worker Anton Mavroianu who positions himself by the main entrance waiting for the youngster to leave.

When the boy does leave, Anton demands the item back. Instead of being frozen with fear that he’s been caught, the boy laughs and walks off.

“All we can do is try to stop them,” Anton tells me. “But this is just another day for us.”

A few weeks earlier, when Anton tried to stop a shoplifter who had stolen from the store, the man pulled out a knife and tried to attack him.

This terrifying incident is an example of the very real threat posed to shop workers as they try to stem the tide of brazen thefts.

Shoplifting offences recorded by police in England and Wales have risen to the highest level in 20 years.

The British Retail Consortium (BRC) also reports that theft-related losses cost the retail sector millions each year, adding strain to an industry already grappling with post-pandemic recovery and economic uncertainty.

For small businesses, which lack the resources of larger chains, persistent theft can threaten their very survival.

Ricky Dougall owns a chain of convenience stores and says shoplifting cost his business around £100,000 last year.

“Shoplifting is a huge problem and it is what stops us from growing the business.

“People come in and help themselves like they own the place and when you call the police, most of the time, they don’t turn up.”

Mr Dougall says part of the problem is how this type of crime is classified.

Sentencing guidelines for thefts of under £200, so-called “low level shoplifting”, were relaxed in 2016. That is being blamed for the surge in cases.

An exclusive Sky News and Association of Convenience Stores survey shows that 80% of shopkeepers surveyed had an incident of retail crime in the past week.

The poll also found 94% of shopkeepers say that in their experience, shoplifting has got worse over the last year, with 83% not confident that the police will take action against the perpetrators of retail crime on their premises.

Paul Cheema from the Association of Convenience Stores says retailers are looking to Government to support them.

“I would say officials do not give a s*** about us retailers,” he tells me. “The losses are too big and I don’t think we can sustain that anymore.

“I would urge Keir Starmer to come and meet us and see up close the challenges that we are facing.”

Retailers have responded by investing heavily in security measures, from advanced surveillance systems to hiring more security staff.

But these investments come at a cost, often passed down to consumers through higher prices.

I get chatting to Matt Roberts, head of retail in the store I am in. He worries about shoplifting, but he worries about the staff more.

“I would imagine they dread coming to work because they’re always on tenterhooks wondering whether something is going to happen today, whether they are going to have to try and confront someone.

“It’s a horrible feeling. It’s out of control and we need help.”

The government has acknowledged the urgency of the issue. Home Secretary-led discussions with retail associations and law enforcement are underway to craft a comprehensive strategy.

In the King’s Speech, the government outlined details of a Crime and Policing Bill, which promised to “introduce stronger measures to tackle low level shoplifting”, as well as introducing a separate offence for assaulting a shop worker.

UK

Two-thirds of teens living with fear of violence, charity warns

Published

6 hours ago

November 20, 2024

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Two-thirds of teens living with fear of violence, charity warns

Children do not feel safe, a charity has warned, as a survey finds two-thirds of teens in England and Wales have a fear of violence.

The charity, which surveyed 10,000 children aged 13-17, found that 20% of teenagers have been victims of violence in the past 12 months.

“I think what shocked me most is how this is a problem that affects all of our children,” said Jon Yates, CEO of the Youth Endowment Fund.

“We found that two-thirds of all teenage children are afraid. And that fear is pretty real for a lot of them.”

He said it’s a fear so palpable that many teenage children are changing their patterns of behaviour, or have had it influence their daily decisions.

One third of teenage children – 33% – reported avoiding areas, whilst around 27% alter their travel routes or avoid public transport altogether to stay safe.

More worryingly, however, some say the fear of violence has led to mental health challenges, with 22% reporting difficulties sleeping, reduced appetite and concentrating in school.

Weapon carrying is also a concern for the charity, especially among vulnerable groups.

In England and Wales, 5% of all 13-17 year olds reported carrying a weapon in the past year, but that figure jumps to 21% for those suspended from school and 36% for children who have been excluded from school.

But Mr Yates said “shockingly” only 12% of children who repeatedly commit violence get any sort of support.

“That’s madness,” he said.

Jay*, 23, from Birmingham said depending on your environment, sometimes violence is hard to avoid.

“I’ve had friends be shot, I’ve got friends who have been stabbed, I had a friend die last month to be fair,” Jay told Sky News.

He said it is “damaging” because you never really get the opportunity to “heal”. He is now being supported by the charity Project Lifeline, but says before then it was difficult to find any hope.

“If you don’t have hope,” Jay added, “you can’t really get anywhere. It’s about finding that hope.”

Mark Rodney, CEO of Lifeline Project, mentors at-risk young children and said he has learned that “not only the perpetrator carries the knife, the victim sometimes carries the knife”.

“And not only the perpetrator does the killing,” he added. “The victim sometimes does the killing, because that’s where we’re at.”

He said far too many families ask themselves “is my child safe going to school or coming home from school?” and adds the government must “actually start addressing people’s concerns”.

The report also found that in 93% of cases where teenage children repeatedly harm others, adults intervene with punishments such as school discipline or police involvement.

However, only 12% of these children are offered support aimed at addressing the root causes of violence and preventing further harm.

Mr Yates said: “They go to school, they do something violent. They get excluded.”

He added: “We need to be much better at saying, ‘we’re not going to lose that child. We’re going to keep providing support to them. We’re going to keep providing a mentor’.

“Instead, we let them fall through the cracks”.

A government spokesperson said: “Halving knife crime in a decade is a clear mission this government has set out.

“It is vital to protect vulnerable young people who are too often the victims or perpetrators of this crime.”

*names have been changed