The UK economy is experiencing its "worst" period of gross domestic product (GDP) growth in "certainly more than a century", economists claim.
Paul Johnson, the director of the Institute for Fiscal Studies (IFS), gave a grim assessment of the country's finances during an interview with GB News's Christopher Chopper this week.
Reacting to Rachel Reeves's Spending Review, Johnson took aim at the fiscal policies implemented by successive Chancellors over the years, citing Brexit and "poor policymaking" as being partially to blame for stagnation.
On "Chopper's Political Podcast", he explained: "This has been the worst getting on for 20 years now... certainly more than a century in terms of persistent lack of economic growth."
Economists are breaking down the impact of Britain's lack of GDP growth
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Reeves has made economic growth the Treasury's main priority since Labour returned to power last July, however has faced pushback after controversial policy move in the Autumn Budget.
While GDP in the UK jumped by 0.7 per cent for the first quarter of the year, the economy's growth rate slipped by 0.3 per cent in April, according to figures from the Office for National Statistics (ONS).
Projections from the International Monetary Fund (IMF) estimate Britain will see GDP rise by 1.2 per cent in 2025, however geopolitical tensions and US tariffs continue to hamper growth.
Johnson noted that the economy is still "living in the shadow of the financial crisis of 08/09", declaring "The big issue is we’re not growing."
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How does the UK's GDP per capita growth rate compare to pre-2008 levels
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Between 2010–2023, UK GDP per capita grew by less than 0.5 per cent annually, compared to over two per cent per year before the recession in-2008.
"If we’d grown over the last 15 years at the rate we grew in the previous 15 years, we’d be a lot richer, and the public finances would be in a much better place," Johnson added.
From 1993 to 2008: UK GDP per capita jumped by around 50 per cent. In comparison, UK GDP per capita has grown by only around seven per cent since the Great Recession.
OBR and IFS analysis suggests the UK economy is forecast to be around £5,000 to £6,000 per person smaller than it would have been under the previous growth trajectory.
According to the IFS director, many of the financial pressures inflicting the UK economy would be mitigated if there was healthy GDP growth.
He stated: “All of this [the fiscal pressures] becomes much easier if your economy is growing. “What’s really made people poorer is the absence of growth."
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Paul Johnson shared his concerns for the UK economy
GB NEWSJohnson claimed that political parties are not being "honest" with the British public about what it will take to bolster economic growth going forward.
"All parties were not honest about the options... Labour has come out with some very big tax rises... I think the Conservatives probably would have had some tax rises. If they hadn’t, they would have had to have had some significant spending cuts," he said.
"Reform suggested vast tax cuts paid for by quotes, ‘efficiency changes.’ The further from the big parties you got, the worse the honesty was."
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