Impact of Brexit already hitting home as UK now last among G7 nations
THE UK IS ALREADY suffering from the impact of the disastrous Tory approach to pursuing a ‘Hard Brexit’ from the European Union as the country fell to the very bottom of a key economic league table.
In 2016 and January 2017 the Tory Government boasted that the UK was “the fastest growing in the G7”, including in statements to the House of Commons by Prime Minister Theresa May and Chancellor Philip Hammond.
But that claim - now that the impact of the crash in the value of the pound in June 2016 has pushed up inflation - is undermined by recent rankings. Among the G7 nations the UK recorded the lowest growth rates of all.
Canada, Germany, and Japan all recorded over 0.5 per cent rates of growth. France and the USA recorded 0.4 and 0.3 per cent respectfully, while Italy - originally 0.2 per cent - was revised up to 0.4 per cent. This leaves the UK trailing at a rate of 0.2 per cent.
On Tuesday (30 May) Tory leader Ruth Davidson claimed “the rest of the UK is still growing at 2 per cent a year. It’s one of the highest growth rates in the G7” despite the latest figures showing this is not true.
UK CPI inflation reached 2.3 per cent in April - meaning that price increases are outstripping wages. In real terms, this means the public is poorer. The value of the pound sterling fell by over 10 per cent after the Brexit vote, which has caused a steady rise in the cost of imported goods and services.
Increased prices have influenced a slowdown in retail and services spending, causing an overall economic slowdown. Theresa May has claimed that economic growth will finance her party’s plans in office.
House prices have also decreased for three months in a row for the first time since 2009, according to new survey information published by Nationwide.
Picture courtesy of Bank of England
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