Janice R. Andrews
Britain’s economy received a major boost as the Organisation for Economic Cooperation and Development (OECD) upgraded its GDP growth forecast from 0.4% to 1.1%, the largest increase among G7 nations. Despite this positive development, Labour’s negative outlook on the economy is being blamed for damaging consumer confidence, especially among older generations, according to the British Retail Consortium (BRC).
BRC CEO Helen Dickinson expressed concern, stating, “Negative coverage of the UK’s financial situation appears to have hurt confidence in the economic future.”
Shadow Business Secretary Kevin Hollinrake criticized Labour’s pessimistic stance, arguing that while challenges remain, depicting the situation as disastrous is counterproductive. Tory leader Rishi Sunak also pointed out that Labour inherited the fastest-growing economy in the G7, but constant negative messaging is dampening consumer and business confidence.
Bank of England rate-setter Megan Greene added that uncertainty around the UK’s economic future is causing businesses and households to hesitate, which may be slowing growth.
However, the OECD remains optimistic about the future, forecasting lower inflation and rising household incomes as wage growth outpaces price increases. The economic outlook for next year is also brighter, with GDP growth expected to rise from 1% to 1.2%.
Chancellor Rachel Reeves welcomed the improved growth figures but stressed that more work is needed to sustain economic progress.
