Rachel from accounts has failed as the British economy is in the ‘worst slump since the financial crisis’

The Resolution Foundation has issued a report which has found productivity has hit rock bottom, which has not been seen since the 1970s.

The Chancellor, Rachel Reeves plans for growth in her Autumn Budget last October has stalled growth, the think tank has warned.

The Resolution Foundation has found the economic slump is “almost unprecedented” as GDP per head is dropped by 0.5% between 2019 and 2024, this is worst slump since the 70s.

The report highlights that the Chancellor is facing huge difficulties in her plans for growth as there is a soaring increase in government borrowing and Donald Trump’s sweeping tariffs war.

Simon Pittaway, from the Resolution Foundation, said, “Britain’s already dire productivity record in the 2010s has got even worse during the turbulent 2020s.

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“The recent slump is the worst since the financial crisis and explains why living standards are struggling to grow.”

The think tank is urging the government to reverse the “malaise” and make this a top priority.

The Resolution Foundation said. “In some areas, such as planning reform and protecting public investment, the government has already taken welcome steps.

“But there are a few areas of focus that aren’t currently receiving the attention they should. The tax system could be tweaked to be more supportive of investment and dynamism.

“Accounting for the post-pandemic productivity divergence between Britain and America 4 Resolution Foundation investment, reducing distortions created by non-residential stamp duty and the VAT registration threshold, and shifting tax incentives from small businesses to high-growth new firms are all worth careful consideration.”

They warned, “Britain has the unenviable record of having both falling productivity and the G7’s biggest drop in working-age employment since before the pandemic.”