Home · Politics · Sep 6 archive
UK Economy Dips as Burnham Takes Over as PM
Confirmed
In Short: The UK economy is expected to have shrunk slightly in July, marking a downbeat start for new Prime Minister Andy Burnham, according to reports.
The UK economy is likely to have shrunk slightly in July due to pressure from weak retail sales and increased energy costs for households, economists have warned. This follows a period of growth in June, where the economy expanded by 0.4% during the second quarter, buoyed by football fever and hot weather.
Burnham's government is 'determined to tackle' the issue of 'mega-donors' in UK politics, a minister has said in response to calls for an immediate cap on donations. The Green Party is expected to be Labour’s main challenger at the forthcoming by-election in Holborn and St Pancras, with Green Party leader Zack Polanski intending to stand.
The pound has found limited support from Burnham’s reaffirmation of fiscal discipline, with markets awaiting Chancellor John Healy’s statement on the government’s programme next week. Healy is expected to make his first major statement on the government’s programme as early as next week.
What's confirmed
What's still developing
- It would represent a downbeat start to the leadership of Andy Burnham, who was appointed Prime Minister during the month.
- He said large parts of the services sector are likely to have witnessed declines and drag on the overall performance of the economy.
- In June, the UK economy grew 0.3% as hospitality and leisure firms received a boost from football fever and the prolonged hot weather.
- However, economists have predicted that there is now likely to be a correction as stronger-than-expected June activity may have brought forward spending from July.
- The market is digesting Prime Minister Andy Burnham’s address to the House of Commons.
- He was replaced by Andy Burnham as prime minister and Labour leader in July after losing the support of his party in the wake of a string of missteps, policy U-turns and dire local election results.