Chancellor Rachel Reeves (Image: BBC/AFP via Getty Images)
Treasury Minister James Murray has refused to rule out the possibility of the UK slipping into a damaging in 2025, amid mounting concern about the country’s economic resilience.
Labour’s first few months in office have been turbulent, not least after a notable rise in UK government bond yields to 4.64% pushed up the cost of government borrowing, heaping pressure on Chancellor .
Speaking on , Mr Murray deflected direct questions about the prospect of a downturn, instead stressing the government’s attempts to boost economic growth.
He said: “What headlines like that underline for me is how crucial it is that we move further and faster to stimulate growth.
“That’s why we are relentless in our focus on this, and we will be doing everything possible to strengthen the economy.”
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‘I can’t predict everything that’s going to happen.’James Murray MP refuses to rule out a UK recession. He says he ‘can’t predict the future’ as he’s quizzed by Camilla Tominey on Rachel Reeves’ role as Chancellor.
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Mr Murray sought to emphasised reasons to be cheerful, citing positive forecasts from international organisations.
He said: “If you look at what the IMF and the OECD have said recently, they’ve outlined that we will be growing at a fast rate over the coming years. “There is cause for optimism.”
Nevertheless, Camilla Tominey pressed him on whether the UK might face a recession, generally defined as a period of economic downturn where a country’s gross domestic product (GDP) decreases for two consecutive quarters.
Without answering the question directly, Mr Murray insisted: “We don’t want that to happen.
“We want economic growth to be boosted, and what we want to do as a government is make sure economic growth is as strong as possible.”
James Murray is interviewed by Camilla Tominey on GB News (Image: GB News)
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The minister pointed to Ms Reeves’ broader economic strategy, suggesting it was aimed at reinvigorating the UK’s financial outlook.
He continued: “The Chancellor has a plan to get the economy growing. Part of our plan for change is about boosting economic growth, and that’s why we are so determined and focused on the change.
Again urged to rule out a recession, he added: “I can’t predict everything that’s going to happen over the next five years. I can’t predict the future.
“What we know is that there are economic headwinds affecting the UK, but that, for me, underscores the importance of us going further and faster. The headlines say to me that we need to go further and faster and boost economic growth.”
Mr Murray said Government was resolute in its commitment to eliminate obstacles to growth, such as outdated planning laws.
He explained: “That is why we’re so determined to make these changes to planning, to all of the things that get in the way of growth, because we know that the way to get out of the situation we’re in is to get the economy growing.”
Assessing Ms Reeves’ performance so far, he said: “We’ve seen a number of difficult decisions she took last year.
“But I think what’s important to realise is there are the right decisions, which have been ducked for too long.”