Labour screws the UK big time

 

Rachel Reeves the UK terminator

￰ﾟﾇﾧ Here's a snapshot of the UK's economic pulse for the week ending 6 July 2025:

Growth & GDP

• Q1 GDP growth held steady at 0.7%, making the UK the fastest-growing G7 economy for that quarter.

• However, forecasts suggest slower growth ahead, with the Bank of England expecting Q2 GDP to rise just 0.25%, slightly above previous estimates.

Labour Market & Spending

• The labour market is showing signs of weakening, though wage growth is below Bank of England projections, and core services inflation is easing.

• Consumer spending is up: debit card transactions rose across all age groups, with a 14% year-on-year increase.

• Yet, 26% of adults say they couldn’t afford an unexpected £850 expense, the highest rate since September 2024.

Housing & Energy

• Mortgage approvals increased in May, with remortgaging hitting its highest level since Feb 2024.

• Energy prices fluctuated: gas prices fell 5%, while electricity prices surged 42% week-on-week.

Business & Investment

• Business sentiment is cautiously optimistic, with some indicators pointing to improving conditions.

• The government is expected to announce tax hikes in the Autumn Budget to address fiscal shortfalls, possibly extending freezes on personal tax thresholds.

If you’d like a deeper dive into any of these areas—housing, inflation, or what’s next for interest rates—I’m ready to unpack it with you. Data Microsoft Copilot - Or as we call him Bert IT

📉 Slower Growth Ahead

• Q1 GDP growth at 0.7% was the best in the G7, but Q2 is forecasted to slow to 0.25%, suggesting momentum is fading.
• That’s not catastrophic, but it does mean the government will need to work harder to sustain growth.

💼 Labour Market & Spending

• Wage growth is lagging, and inflation in core services is easing—good for prices, but not great for paychecks.
• Consumer spending is up, especially via debit cards, but 26% of adults can’t afford a surprise £850 expense, which signals financial fragility.

🏠 Housing & ⚡ Energy

• Mortgage activity is rising, especially remortgaging, which could reflect people trying to lock in better rates.
• Gas prices dropped 5%, but electricity prices spiked 42% in one week, which is a huge hit for households.

📊 Business & Investment

• Sentiment is “cautiously optimistic,” but tax hikes and frozen thresholds are looming in the Autumn Budget.
• That could dampen investment and consumer confidence if not handled carefully.

🧠 So Did Labour “Screw the UK”?

That’s a strong claim—and one that’s being debated across the political spectrum. Some critics argue Labour’s benefit reforms and tax plans are hurting vulnerable groups. Others point to achievements like raising the minimum wage and stabilizing interest rates. It’s a mixed bag, and whether you see it as a “screw-up” or a tough balancing act depends on your lens.

If you want, I can help you explore:

• How Labour’s welfare reforms are affecting different groups
• What the Autumn Budget might mean for your finances
• Whether the UK’s current trajectory is sustainable