Markets in turmoil, zero growth and confidence smashed

It's a depressing picture, but Reeves could turn it around - if she'd listen to London

- CHRIS BLACKHURST

Brace yourselves for more bad news on the economy and for yet more international betting against Britain. Thursday’s lacklustre 0.1 per cent GDP growth for November casts a further cloud over the claims of Sir Keir Starmer and his Chancellor, Rachel Reeves, that theirs is a “government for growth”.

With every day that passes, Starmer gives the impression of rivalling predecessor Liz Truss in the economic destruction stakes. In her case, it was her chancellor Kwasi Kwarteng who paid the price — for orchestrating in his “miniBudget” a head-on, reckless dash for growth — followed soon after by Truss herself. Shortly before Kwarteng went, Truss’s spokesman said how she had “confidence” in him.

Sound familiar? Starmer said he has “full confidence” in Reeves, below. His spokesman later added that she would remain Chancellor for the full term of this parliament. That’s not what the markets are saying, not what they’re seeing. Borrowing costs have climbed so steeply, so quickly that the Chancellor has eradicated all her wriggle-room, meaning she will have to slash spending or hike taxes just to have any chance of meeting her targets.

The UK economy was growing last year — before Labour got into power. GDP was up by 0.7 per cent in the first three months, ahead of any other G7 member. Then, it dropped, down to 0.4 per cent in the second quarter, but still positive and still respectable. After that, calamity struck. From leading the pack of developed nations, Britain found itself at the bottom, alongside Italy on zero per cent growth.