Positive Money response to GDP figures

London, 11 October 2024 - Positive Money responds to the ONS' estimate that GDP grew by 0.2% in August 2024.

Fran Boait, Co-Executive Director at Positive Money, said:

“The government will welcome today’s growth figures, but higher GDP doesn’t necessarily translate into improved living standards: just ask the millions of people reliant on food banks or struggling to keep a roof over their heads.

“We desperately need long-term public investment, including support for those at the sharp end of the cost of living crisis, and this can’t be dependent on the whims of monthly GDP figures that tell us little about the health of the real economy.

“The Government’s plans to use the Autumn Budget to better reflect the benefits of public investment in its fiscal rules is a welcome first step in this direction, but in the long-term we must begin to take a more holistic view of our economy than the ratio of debt to GDP.”

Notes:

• GDP monthly estimates can be found here: https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpmonthlyestimateuk/previousReleases 

• The Trussell charity found that over 9 million people in the UK experience levels of poverty and hunger so extreme they’re vulnerable to reliance on food banks: https://www.theguardian.com/society/2024/oct/09/britons-vulnerable-reliance-food-banks-research-finds 

• The level of mortgage arrears has reached a decade high according to the latest Bank of England figures: https://www.thisismoney.co.uk/money/mortgageshome/article-13833817/Mortgage-arrears-decade-high-says-Bank-England-higher-rates-hit-households.html 

• Freedom of Information (FOI) data from 82 local authorities – around a third of the number of councils which own social housing – shows more than £240m was owed in social housing rent arrears in June/July this year: https://www.independent.co.uk/news/uk/home-news/rent-housing-arrears-dwp-benefits-b2615039.html 

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

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