“It does concern me that the supply side of the economy has slowed. It does concern me a lot.”
The Governor of the Bank of England has poured cold water over Tory claims that the UK economy has turned a corner, warning that the potential for economic growth in the months ahead was “lower than it has been in much of my working life”.
Andrew Bailey made the comments during an interview with Newcastle Chronicle Live, just days after Chancellor Jeremy Hunt said that the UK economy is ‘back on track’ while delivering his autumn statement, saying that the economy had turned a corner.
Hunt told the Commons: “We are delivering the biggest business tax cut in modern British history, the largest ever cut to employee and self-employed national insurance and the biggest package of tax cuts to be implemented since the 1980s.
“An Autumn Statement for a country that has turned a corner.”
Earlier this month, it was also revealed that the UK economy had flatlined and did not grow at all between July and September, according to figures released by the ONS, just days after Sunak claimed that the economy was growing.
Taking apart the latest Tory claims on the economy, Bailey said: “If you look at what I call the potential growth rates of the economy, there’s no doubt it’s lower than it has been in much of my working life.
“It does concern me that the supply side of the economy has slowed. It does concern me a lot.”
Inflation continues to cause concern for the bank, with further bad news for mortgage holders after the governor said interest rates would not come down again “for the foreseeable future”.
Basit Mahmood is editor of Left Foot Forward
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