“When those in power mistake trickle-down promises for policy, the only thing that trickles is hardship.”
April’s GDP figures are in—and they make for grim reading. A 0.3% contraction in the UK economy, worse than expected, has put paid to any illusions that the Government’s “growth agenda” is delivering for the people. The contraction comes hard on the heels of tax hikes on employers and global tremors from President Trump’s tariff regime—but there’s a deeper issue at play. This isn’t just a blip. It’s the result of a fundamental misdiagnosis of where growth really comes from.
Rachel Reeves, the City’s Chancellor
In what can only be described as a disappointing turn for a Labour government, Chancellor Rachel Reeves continues to position the financial sector—not the British people—at the heart of economic policy. Her strategy of appeasing the City by signalling “stability,” “fiscal discipline,” and “responsible investment” is simply the old orthodoxy in a new suit.
But stability for whom?
For ordinary families, stability has meant stagnating wages, rising mortgage costs, and stealth tax raids that leave less in people’s pockets every month. Meanwhile, the levers of economic policy are being pulled for the benefit of speculative finance, not productive households or local economies.
Shrinking Services, Shrinking Confidence
The Office for National Statistics (ONS) points to a 0.4% fall in the services sector—responsible for three-quarters of our GDP—as the key driver of April’s contraction. That’s not just a technical blip. That’s real businesses, real jobs, and real families feeling the pinch.
Add to this the impact of the rise in National Insurance Contributions for employers, and you get a toxic mix: reduced hiring, falling consumer demand, and businesses that can’t afford to invest. This isn’t growth—it’s erosion.
Wrong Diagnosis, Wrong Cure
Let’s be clear: we will not build a thriving economy by courting capital markets and appeasing credit rating agencies. Growth doesn’t start on the trading floor of Canary Wharf. It starts in the wallets and aspirations of ordinary people.
Putting money into consumers’ pockets—through fair wages, lower energy bills, affordable housing, and properly funded public services—is the only credible route to sustainable prosperity. But instead, this Government is presiding over policies that do the opposite.
Austerity in Disguise
Much like the post-2008 period, Reeves’ agenda risks being austerity rebranded. Emphasis on “sound money” may sound virtuous in soundbites, but when it translates into underinvestment in the real economy and regressive taxation, it becomes a silent killer of growth.
As Yael Selfin of KPMG rightly noted, global trade shocks have played a role—but Britain’s vulnerability to those shocks is exacerbated by domestic policy choices that leave us economically exposed and socially brittle.
Where We Go From Here
We need a bold pivot. A people-first economic plan—one that invests in communities, redistributes power away from the City, and recognises that human capital is our nation’s most underutilised asset. Instead of doubling down on failed trickle-down fantasies, we must deliver bottom-up regeneration—led by and for the people.
Because when workers thrive, communities flourish. And when we plan for people, prosperity follows.
📢 Join the conversation: What does real growth mean to you? Is the current strategy helping or hurting your household or business? Comment below or connect via #FinancialJustice #PeopleFirstEconomy.
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