Labour's government, under Sir Keir Starmer, took power on July 5, 2024, with ambitions to enhance the UK's economy and living standards. Initial progress was rocky, resulting in a flatlining economy and a watered-down growth target for G7 rankings. Despite a slight GDP increase of 0.5% by April 2025, challenges persist. Policy measures like wage increases and higher National Insurance fees burden businesses, leading to a loss of over 250,000 jobs, primarily in hospitality and retail sectors. Employer hesitancy has been reflected in job posting declines since the Autumn Budget.
The government says its number one mission is to put more money in pockets, which means growth. Over the last 15 years, the UK has expanded at a fraction of its previous rate.
It was a rocky start for the government as the economy flatlined in the second half of the year and ministers watered down their aim to have the fastest growth in the G7 major economies.
A pick up at the start of 2025 meant that GDP per person was about half of 1% higher by April than it had been last summer.
There are more than a quarter of a million fewer employees than a year ago; the biggest losses are in hospitality and retail, among the sectors most likely to have seen their wage bills increase.
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