Starmer admits UK's economic performance is 'not good enough' after economy shrinks in September

15 November 2024, 18:45

The economy slowed between July and September, growing by just 0.1%, and shrank during September itself
The economy slowed between July and September, growing by just 0.1%, and shrank during September itself. Picture: Alamy

By Will Conroy

Sir Keir Starmer admitted the UK's economic performance is “not good enough” after figures showed there was little growth between July and September.

Listen to this article

Loading audio...

The economy slowed over the three-month period, growing by just 0.1%, and shrank during September itself.

Despite these figures not taking into account the subsequent impact of Labour’s autumn Budget, uncertainty over the fiscal event is being blamed for the weak growth.

On a visit to a factory in Wales this afternoon, the Prime Minister said the growth numbers “were not good enough, not satisfactory” and said they were partly due to Britain having changed PMs and Chancellors too often.

“The most important thing is economic stability because that's what's going to encourage investors to put their money into the UK,” he said.

On a visit to a factory in Wales this afternoon, the Prime Minister said the growth numbers 'were not good enough'
On a visit to a factory in Wales this afternoon, the Prime Minister said the growth numbers 'were not good enough'. Picture: Alamy

Labour made boosting economic growth its top priority when it came into power but the Chancellor Rachel Reeves also admitted this morning she is “not satisfied” with the way the economy is going.

She said: “Improving economic growth is at the heart of everything I am seeking to achieve, which is why I am not satisfied with these numbers.

“At my Budget, I took the difficult choices to fix the foundations and stabilise our public finances.

“Now we are going to deliver growth through investment and reform to create more jobs and more money in people's pockets, get the NHS back on its feet, rebuild Britain and secure our borders in a decade of national renewal.”

Chancellor Rachel Reeves also admitted this morning she is 'not satisfied'
Chancellor Rachel Reeves also admitted this morning she is 'not satisfied'. Picture: Alamy

However, many businesses have criticised tax rises in the Budget which they say will lead to higher prices and fewer new jobs.

Major companies, including Marks & Spencer and Sainsbury's have hinted at price rises because of the changes.

The latest growth figure was weaker than expected and was a sharp slowdown from the 0.5% growth seen in the April to June period.

Read more: Starmer unveils new target to slash UK emissions - but insists he 'won't tell Brits how to live their lives'

Read more: Rachel Reeves 'not satisfied' as UK growth slows between July and September

Liz McKeown, ONS director of economic statistics, said: “The economy grew a little in the latest quarter overall as the recent slowdown in growth continued.

“Retail and new construction work both performed well, partially offset by falls in telecommunications and wholesale. Generally, growth was subdued across most industries in the latest quarter."

She added: “In September the economy shrank a little. Services showed no growth with a notable increase in car sales offset by a slow month for IT companies.

“Production fell overall, driven by manufacturing, though there was an increase in oil and gas extraction.”

More Latest News

See more More Latest News

File photo dated 19-05-2024 of Manchester City's Kevin De Bruyne lifting the Premier League trophy with team-mates.

Kevin De Bruyne to leave Manchester City, as Pep Guardiola calls him 'one of greatest midfielders to play in England'

Stock markets plummeted on Friday

Starmer 'pushing for Trump royal visit this year' as UK bids for US trade deal - after tariffs spark turmoil in markets

Tom Howard

British tourist killed after being struck by boulder on trek through Himalayas

In this photo provided by the Ukrainian Emergency Service, a car burns following a Russian missile attack that killed more than a dozen people, including children, in Kryvyi Rih, Ukraine, Friday, April 4, 2025. (Ukrainian Emergency Service via AP)

Russia kills 16 people including three children in missile strike on Zelenskyy's home town, with dozens wounded

Travel influencer Mykhailo Viktorovych Polyakov, 24, made an illegal visit to North Sentinel Island

Tourist who left Coke for world's most isolated tribe 'could have wiped them all out' - and police 'can't go collect can'

Club house covered in red paint as members of group Palestine action caused damage to the Trump owned site of Trump Turnberry Golf Club in Scotland.

Police arrest man, 33, and woman, 55, after Donald Trump's Scottish golf course vandalised with red paint

Man, 23, who gouged out pensioner's eyes before beating him to death with his own walking stick locked up indefinitely

Man, 23, who gouged pensioner's eyes out before beating him to death with his own walking stick locked up indefinitely

The FTSE 100 plummeted on Friday

UK stock market plunges amid Trump tariff chaos as FTSE 100 suffers worst trading losses in five years

The scene at Beckenham Place Park

London park evacuated as police search for teenage boy who went missing while swimming in lake

Tommy Robinson pictured last year

Tommy Robinson in bid for freedom with appeal against contempt of court jail sentence after libelling teen refugee

Layla Allen died at the scene

'Cherished beyond words': Family pay tribute to 'shining light' 13-year-old killed in Merseyside house fire

Russell Brand

Russell Brand breaks silence after actor and comedian charged with rape and sexual assaults

White House weighs in to support ‘censored’ anti-abortion activists in Britain

White House looking to support ‘censored’ anti-abortion activists in Britain

Sean "Diddy" Combs.

Sean 'Diddy' Combs charged with two further counts of sex trafficking

XL Bully (FILE)

XL Bully on the loose after drive-by shooting in Sheffield as police issue urgent safety warning

Peter Serafinowicz and Sarah Alexander have split.

Amandaland star and comedian Peter Serafinowicz splits from actress wife after 23 years