The Office for National Statistics (ONS) has published new GDP figures which show the UK economy flatlined in the three months to May, with GDP actually falling by 0.1% last month. Monthly GDP is just 0.2% above its pre-pandemic levels. The ‘good’ news is the 0.1% fall in May was slightly better than the 0.3% contraction expected; the bad news, of course, is inflation is still stuck at 8.7%. Rishi’s first two pledges were to halve inflation and grow the economy this year. We are now halfway through July…

The Liz Truss-backed Growth Commission, launched only yesterday, is already on the attack, with co-chair Shanker Singham saying this morning:

“Low or no growth and the inevitable toss up between pay increases and service cuts. This is all why growth is so important. With growth, with a bigger pie, you can support proper pay without having to impact services. You can put more money in people’s pockets and the Government coffers. It has to be the primary focus of policymakers.”

Boffins at Capital Economics predict growth of 0.1% in the three months to June, at least. We should be so lucky…