Support 100 years of independent journalism.

  1. Politics
  2. UK Politics
28 April 2017

The economic slowdown is another reason Theresa May called an early election

The Prime Minister has gone to the country before the living standards squeeze becomes too strong.

By George Eaton

The recession that the Treasury and others forecast would follow the EU referendum never came. But we now have the clearest evidence yet of an economic slowdown. In the first quarter of 2017, GDP grew by just 0.3 per cent, down from 0.7 per cent in the previous three months and the slowest rate since the beginning of 2016.

For individuals, growth is now almost non-existent. GDP per capita rose by 0.1 per cent, continuing the worst living standards recovery on record. As the Resolution Foundation noted, GDP per capita is just 1.7 per cent above pre-crisis levels, compared to 16.3 per cent after the ’90s recession and 24.5 per cent following the ’80s recession. Higher inflation (owing to the pound’s depreciation) and stagnant pay are hindering Britain’s main source of growth: consumption (which accounted for 100 per cent of per capita growth in 2016).

As I recently noted in my column, the economic slowdown was another reason for Theresa May to call an early general election. A renewed living standards squeeze has begun but it is too early for much political damage to result.

It was precisely to deny prime ministers the chance to call an election at the most favourable moment that many argued for the introduction of fixed-term parliaments. Labour had little choice but to constent (though some argue Jeremy Corbyn should have forced Theresa May to hold a vote of no confidence). But today’s figures will be cited as evidence of why future prime ministers should not be allowed to repeat May’s trick.

Select and enter your email address Quick and essential guide to domestic and global politics from the New Statesman's politics team. A weekly newsletter helping you fit together the pieces of the global economic slowdown. The New Statesman’s global affairs newsletter, every Monday and Friday. The best of the New Statesman, delivered to your inbox every weekday morning. The New Statesman’s weekly environment email on the politics, business and culture of the climate and nature crises - in your inbox every Thursday. Our weekly culture newsletter – from books and art to pop culture and memes – sent every Friday. A weekly round-up of some of the best articles featured in the most recent issue of the New Statesman, sent each Saturday. A newsletter showcasing the finest writing from the ideas section and the NS archive, covering political ideas, philosophy, criticism and intellectual history - sent every Wednesday. Sign up to receive information regarding NS events, subscription offers & product updates.
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy
THANK YOU

Content from our partners
High streets remain vitally important to local communities
The future of gas
Taxing non-doms fairly would raise billions