How Labour policy is determining the UK economy’s winners – and losers
The UK economy has surprised economists this year by posting higher growth than expected. Mauricio Alencar looks at whether signs of “good growth” are beginning to appear – and why it’s not feeding through into living standards. Before coming to power, the Labour Party promised to make the UK the fastest growing economy in the [...]
The UK economy has exceeded expectations this year, posting higher growth than forecast. Labour's industrial strategy aims to make the UK the fastest-growing G7 economy, but the benefits of this growth are not trickling down to living standards. The government's focus on "good growth" involves picking winners from high-potential sectors, such as advanced manufacturing, clean energy, and digital industries.
Notably, official data reveal that growth has been driven by a variety of factors beyond artificial intelligence, including computer programming, professional services, creative industries, pharmaceuticals, and the aerospace industry. Labour officials have prioritized these sectors as key to their economic strategy. However, certain sectors have struggled under Labour's policies, including gambling, oil and gas extraction, agriculture, construction, and food and beverage services.
The construction industry, in particular, has faltered despite the government's promise to build 1.5 million homes. This decline could hinder Labour's public infrastructure initiatives. Additionally, sectors like clothing production and security services have also experienced significant declines, raising concerns about the government's ability to build economic resilience.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
