Disappointing GDP data should hasten review of ‘Plan B’
10 December 2021
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In the Media
Christopher Snowdon writes for The Spectator
9 December 2021
Lifestyle Economics
Christopher Snowdon comments for The Express
10 December 2021
Trade, Development, and Immigration
4 November 2024
Commenting on the GDP data published today by the ONS, Julian Jessop, Economics Fellow at free market think tank the Institute of Economic Affairs, said:
“The growth of just 0.1 per cent in the UK economy in October suggests that the recovery was already stalling, even before the scare over the Omicron variant. The latest business and consumer surveys are more encouraging, and activity should have picked up in November. Unfortunately, and perhaps unnecessarily, the economy will now be whacked again by ‘Plan B’.
“GDP was undercut in October by falls in energy and mining output, which are relatively volatile, and by weakness in manufacturing and especially in construction, partly due to global supply problems which are now easing. These components should therefore bounce back in November. But output in the services sector was lacklustre too.
“The direct effect of the new Covid measures will be compounded by the potentially chilling effect on consumer and business confidence, which could hit spending hard in the coming weeks. The hospitality sector in particular may need more support in the crucial pre-Christmas period, adding to the burden on the taxpayer.
“The disappointing GDP data therefore strengthen the case for the government to review the new ‘Plan B’ restrictions sooner rather than later, as new evidence emerges on the risks posed by Omicron.”
ENDS
Notes to editors
Contact: Emily Carver, Head of Media, 07715 942 731
IEA spokespeople are available for interview and further comment.
“The growth of just 0.1 per cent in the UK economy in October suggests that the recovery was already stalling, even before the scare over the Omicron variant. The latest business and consumer surveys are more encouraging, and activity should have picked up in November. Unfortunately, and perhaps unnecessarily, the economy will now be whacked again by ‘Plan B’.
“GDP was undercut in October by falls in energy and mining output, which are relatively volatile, and by weakness in manufacturing and especially in construction, partly due to global supply problems which are now easing. These components should therefore bounce back in November. But output in the services sector was lacklustre too.
“The direct effect of the new Covid measures will be compounded by the potentially chilling effect on consumer and business confidence, which could hit spending hard in the coming weeks. The hospitality sector in particular may need more support in the crucial pre-Christmas period, adding to the burden on the taxpayer.
“The disappointing GDP data therefore strengthen the case for the government to review the new ‘Plan B’ restrictions sooner rather than later, as new evidence emerges on the risks posed by Omicron.”
ENDS
Notes to editors
Contact: Emily Carver, Head of Media, 07715 942 731
IEA spokespeople are available for interview and further comment.
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