GDP figures: Positive Money response

London, 13 February 2025 - Positive Money responds to today’s estimates from the Office for National Statistics (ONS) that UK GDP grew by 0.1% in the last quarter of 2024 and monthly growth was 0.4% in December 2024. 

Hannah Dewhirst, Head of Campaigns at Positive Money, said: 

“We can’t count on a financial sector that directs most of its investment to stocks and shares to deliver the kind of economic growth that most people feel in their everyday lives.

“Loosening the rules for banks - which already spend most of their profits on bigger banker bonuses and payouts for shareholders - will only see them take more risks at the expense of the public, whose life savings they’re playing with.

“Instead of rolling back protections put in place after the 2008 financial crash in the hope that this will deliver growth, the Government should look at reducing subsidies going to banks and making our tax system fairer in order to deliver on its promise to improve public services and living standards across the UK.”

Notes:

• The ONS’ latest quarterly growth estimate can be found here: https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpfirstquarterlyestimateuk/octobertodecember2024 

• The ONS’ latest monthly growth estimate can be found here: https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpmonthlyestimateuk/december2024  

• New figures from the Bank of England show up to £150bn could be paid out from the Government by 2030 to cover losses from unwinding QE. This amounts to roughly £30 billion a year in transfers from the Treasury to the Bank of England over the next five years, according to the Bank’s latest projections: https://www.bankofengland.co.uk/asset-purchase-facility/2024/2024-q4 

• Banks are mostly lending to buy property; the stock of bank loans held by non-financial corporations, i.e. businesses that produce non-financial goods and services, is today at a lower level than in 2010: https://positivemoney.org/update/how-is-bank-lending-shaping-uk-economy/ 

• Today, Barclays announced pre-tax profits for 2024 of £8.1 billion and spent £3 billion on dividend payments and share buybacks: https://home.barclays/investor-relations/reports-and-events/financial-results/ 

• Last year, Positive Money predicted that a windfall tax on the profits of Britain's biggest banks could bring in nearly £15bn for public spending: https://positivemoney.org/press-release/windfall-tax-on-bank-profits-could-raise-ps15bn-in-2024/ 

About Positive Money:

Positive Money is an international research and campaign organisation working to redesign our economic system for social justice and a liveable planet. Set up in the aftermath of the financial crisis, Positive Money is a not-for-profit company funded by charitable trusts and foundations, as well as small donations from its network of supporters. Find out more: www.positivemoney.org