Keir Starmer claims economy ‘starting to turn around’ despite ‘signals of recession’ looming

Sir Keir Starmer has claimed Britain’s economy is “starting to turn around” – in the face of growing fears that the UK is teetering on the brink of recession once again.

Speaking to Bloomberg after a meeting with business bosses in the City today, the Prime Minister vowed: “We have to get our economy working. I think we’re beginning to see how that’s turning around.”

“The number one priority of this Labour government is growth. Growth, growth, growth.”

But the private sector remains unconvinced – with firms expecting a significant fall in activity over the next three months, according to Confederation of British Industry (CBI) analysis.

Businesses are bracing for a plunge to around -0.5 per cent private sector growth over the next quarter – which Institute of Economic Affairs economics fellow Julian Jessop has warned is “another UK recession signal”.

The CBI’s Alpesh Paleja added: “After a grim lead-up to Christmas, the New Year hasn’t brought any sense of renewal, with businesses still expecting a significant fall in activity.

“Anecdotes suggest that companies are being hit by lacklustre demand and caution among consumers, while also continuing to adjust to measures announced in the Budget.

“There is an urgent need to get momentum back into the economy.”

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He has also piled the pressure on Labour to act, saying: “With forecasts of underwhelming growth this year and less headroom for business investment, the way forward lies in the Government and firms working together to deliver on their growth plan to restore confidence and get the economy firing on all cylinders.”

That appeared to be on the PM’s mind in the City today – he told a group of CEOs that expanding the economy is his administration’s “number one mission”, adding that ministers are “hardwiring growth into all the decisions of the Cabinet.”

In order to achieve that, Starmer said, it will be necessary to work together with the private sector.

After the Bloomberg meeting, Starmer vowed that Labour’s so-called “Plan For Change” “will deliver” growth.

While Rachel Reeves said simply: “We are going for growth.”

But that was met with some consternation online – Reform UK’s Rupert Lowe replied: “And I’m ‘going for’ the Wimbledon Men’s Singles title.

“That’s probably more likely than your lot delivering any substantial economic growth, to be fair,” he jabbed.