The government celebrates a one month growth of 0.3% amidst a bleak outlook

The government will switch from the usual 3 monthly growth figures to a one month figure for November as it showed a 0.3% positive advance. The three monthly figure to November was still in the mire at 0.1%. What the figures show is despite all the bad policies dragging down all too many sectors, there remains some life in UK services sufficient to give the UK a slightly higher growth rate than the Eurozone and EU which the government wants us to copy more closely.

The worst news in the figures is the continuing fall in construction output.  That was down 1.15 for the three months and down 1.3% in November. You would expect construction of new shops and offices to be depressed by the lack of investment and the high taxes. You would expect private sector housing to be depressed by the squeeze on incomes and by high house prices. What was more surprising from a high spending government was the biggest fall came in public sector housing. A Labour Housing Minister has some explaining to do.

Vehicle manufacture figures have been distorted by the impact of the cyber attack on JLR, with the national figures sharply down in September and recovering somewhat in November. It all helps to disguise the growing impact of the policy of demanding more battery cars and fewer petrol and diesel cars be sold, which will mean a much smaller UK industry going forward if the government persists with its damaging tax/subsidy policy.

Mining and quarrying are well down with the bans on oil and gas having a bigger impact as time passes. The UK is reluctant to get things out of the ground here, preferring to pay the extra price of imports and the loss of tax revenue and jobs that goes with that.

What is perplexing is why the government thinks that it will grow faster when

  1. It pursues ever higher energy prices
  2. It bans our oil, gas and coal extraction
  3. It raises taxes on jobs
  4. It taxes successful and wealthy people out of the country
  5. It(along with the Labour Mayor) will not allow much new  housing development in London which is where demand for extra housing is strongest and prices are highest
  6. It tries to stop people buying things they want and tries to get them to buy things they do not want in  the name of net zero
  7. It offers subsidies to farmers to not grow food, and taxes those who dare to grow food
  8. It wants to adopt more EU rules that will impede innovation and investment at home  and cheaper imports from non EU sources

On current policies the government will not be happy until the UK is growing as slowly as Germany, adopting all the same rules and taxes that hold it back.

 

17 Comments

  1. Stred
    January 16, 2026

    The definition of GDP includes government spending and consumption. Labour is increasing government spending, welfare payments and population increases with spending on accommodation and subsidies. Even imported stuff for government counts such as police cars and NHS equipment. Inflated food prices cause GDP to rise through consumption. Ministers taking trips by plane counts as services. Insurance costs increasing because of labour and materials doubling counts as services and GDP. Even the BBC using their very highly paid staff to produce doctored programmes resulting in libel actions is on the bill.
    We can therefore have industries and private entertainment services closing down and loss of jobs while public employment is increasing while GDP bumps along at rates a fraction of other countries which ignore net zero.

    Reply
    1. Stred
      January 16, 2026

      GDP per capita has been flattening as population increase has outstripped GDP. https://www.statista.com/statistics/970672/gdp-per-capita-in-the-uk/

      Reply
      1. Lifelogic
        January 16, 2026

        Indeed. The output of government can often be of hige negative value or no value this especially as the money comes for taxes on the largely productive private sector hobbling them. Yet it still counts towards their GDP figure. I say largely productive private sector but much of the private sector that is actually growing is in compliance with ever more largely idiotic red tape and is thus not really producing anything of real value. This in law, employment compliance, landlord compliance, OTT health and safety, net zero lunacy, getting round moronic planning obstacles, tax planning, EV car lunacy…

        Reply
  2. Ian Wragg
    January 16, 2026

    Yesterday the clown Milibrain announced a father £1.8 billion for the installation of more useless windmills offshore. Power at a guaranteed price of £91 per mwh. Onshore wind and solar has yet to be announced. This is more money being removed from the economy to subsidise mainly foreign owned companies.
    Motor manufacturing is down to levels not seen since the 50s, another major employer about to vanish along with oil, gas and steel.
    Major builders are laying staff off because there are no buyers and in London house prices are being discounted at up to 50%
    No one sane believes the economy is growing only the immigration and benefits Bill

    Reply
    1. Ian Wragg
      January 16, 2026

      As I type we are currently Importing 22% of our electricity at £92 per mwh which we could generate for £55 per mwh. Again this is removing more money from the economy to subsidise foreign consumers, particularly the French. Madness.

      Reply
    2. Lifelogic
      January 16, 2026

      A guaranteed price but not a guaranteed delivery when energy is actually required unless God has signed the contract too! So worth far less than on demand electricity such as gas, coal, oil, nuclear. So these power stations have to back up and run far less efficiently as a direct result. Total economic and engineering illiteracy Ed!

      Reply
  3. Mark B
    January 16, 2026

    Good morning.

    This pitiful figure is dwarfed even further by the growth rates coming from the USA. It shows that Liz Truss plan would have delivered prosperity has she been given a chance and not sabotaged in the way she was. Not that is to say she was blameless in her fall, but she was most certainly given a nudge.

    We also have to take into consideration the lies of this government and in particular the Chancer of the Exchequer. The £20bn black hole that never was and the tax hikes that followed it, especially employers national insurance contributions have led us to where we are.

    And finally, inflation. What ever pitiful gains there are will be wiped out by rampant inflation. Those extra costs on the Private Sector have to passed on.

    The May elections this year may prove pivotal. Because if TTK goes, the Reeves goes too.

    Reply
  4. Michelle
    January 16, 2026

    I think point 8. is probably the overriding factor and where all roads lead to….the EU
    So many in political circles and all others on their coat tails, never wanted to leave the EU because it suited them.
    It suited them professionally, likely financially as well as ideologically. The super state, run by a select few with a veneer of democracy, with perks and well paid jobs for those who wave the flag and sing the anthem and pass down the directives and laws to Joe Public.
    Who in the current government gives a fig if private sector jobs are crumbling. The state should own and control all in their world view.
    If the figures look dire, well they can just wheel out the tried and tested ‘Brexit is to blame’

    Reply
  5. iain gill
    January 16, 2026

    the public give a full and comprehensive list of reasons the government is wrong and doomed in their replies on social media to starmer, wes, and friends. there are no supporters visible. a sensible opposition would suck the replies up into a database, analyse them, and summarise them, which would be a far better way of tackling the government than current opposition parties and their focus group etc approaches.

    Reply
  6. Sakara Gold
    January 16, 2026

    One of the puzzling things about the last election was the really huge swing to Labour, despite having an uncharismatic leader in Sir Kier Starmer and no recent experience of government.

    Here, in the 5th richest country in the world, 6 million folk were forced to use foodbanks at least once in 2024. A quarter of our schoolkids qualify for free school meals. The Labour government has had to roll out breakfast clubs to thousands of schools across the country. The amount of child poverty in Britain has reached levels not seen since the Poor Laws forced the destitute into workhouses.

    Many of these kids have parents where both had two or even three jobs. The cuts in working benefit tax credits and the transition to Universal Credit have made them destitute, as the payments have not kept up with food and rent inflation. Many of these families are being forced out of their homes regularly under no fault evictions, as landlords are forced to pay higher interest on their buy-to-let mortgages.

    A generation ago, under a Conservative administration, 350,000 families had their homes repossessed. They voted for Blair’s New Labour in 1997. 6 million hardworking but destitute folk voted Labour in July 2024 because they saw a change of government as their only hope for a better life.

    Sunak’s hard-right manifesto was a disappointment to these people. It will be a very long time indeed before the country votes Conservative again.

    Reply Labour polled badly at the last election. Many voters declined to vote either Labour or Conservative. In the next election they will vote for big changes from the policies of this hopeless government.

    Reply
  7. iain gill
    January 16, 2026

    cannot believe that the opposition parties are not making a bigger deal of the water supply failure in Tunbridge wells and the massive failure of the water company. in the same way as west mids police are complete failures, not to mention Rotherham and Bradford police. we need a big statement about the complete failure of many big organisations we rely on, and some vision on how quality is going to be ramped up.

    Reply
  8. Sakara Gold
    January 16, 2026

    Well this time a far-right turncoat Tory MP was fired before he had time to jump – as Badenoch demonstrated a surprising, decisive, streak. The dreadful Nigel Farage had to pull his latest press conference forward, to welcome Robert Jenrick into Richard Tice’s anti-swans Reform limited company

    One thing British politicians are noted for is rampant opportunism. And naked ambition.

    Jenrick should resign his seat, force a by-election and stand as a Reform candidate. This he won’t do – he might lose. Reform’s standing in the latest polls has tanked again

    Reply
    1. Berkshire Alan.
      January 16, 2026

      SG
      You suggest that the polls say Reform has tanked again, but they are still top !
      Does not say much for the others does it !
      Yes there are certainly question marks against Reform, but fewer than there are about the direction of the New Greens.
      However I do agree any member who moves Party should stand again at a by-election, but few ever do !

      Reply
    2. Ian Wragg
      January 16, 2026

      Yesterday polls tracker had Reform on 33% and that’s the Guardian. Hardly tanking. You di maje things up.

      Reply
  9. iain gill
    January 16, 2026

    the US state department continually slagging off the British government as if UK is a tin pot banana republic is quite something.
    there is no way to defend starmer and his cancelling elections, stopping free speech, and so much more.

    Reply
  10. Rod Evans
    January 16, 2026

    The economic policies this government and indeed the previous government follows are designed to scale back our capacity to produce. It does not matter what words are used to justify this the pursuit of Net Zero is used to justify the scale back of manufacturing claiming new technologies will provide replacement work and opportunities. The facts do not support that story. We are being deindustrialised and left vulnerable as a consequence.
    That reality does not get enough coverage or challenge in the media but there is something far worse happening at the same time.
    The active degrading of democracy by cancelling ever more local elections is not a casual policy. The excuse for denying voters there right to choose who oversees local government, is councils could not manage an election and reorganisation. Those of us who have experience of local politics know the councillors will not be the ones involved in the reorganisation they will simply be overseeing it and asking questions. The permanent staff are the ones doing the reorganisation. The lame excuse that holding elections and doing their day job will be too demanding is risible. The truth is Labour will be wiped out of local government if elections are held. That and only that is the reason Labour are abandoning democracy, they know they will be thrown out and can not stand the political fall out from that.

    Reply
  11. Berkshire Alan.
    January 16, 2026

    Yes John, our Country is in one God almighty mess, as individuals most of us are trying to do our best, but are being totally frustrated and limited by government policies and ever rising taxes over many years.
    Most of our Politicians have lost the plot completely, and that is why in desperation people are looking at Reform, and some even thinking that the Greens are the answer.
    One thing is absolutely clear, we need a change of direction, and quickly.

    Reply

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