Sir James Dyson calls on political leaders to ‘go for growth’ to rescue economy
Sir James Dyson has accused political leaders of not “going for growth” after official figures showed the UK is at risk of falling into a recession.
Between July and September, gross domestic product (GDP) fell by a revised 0.1% against the zero growth initially estimated, the Office for National Statistics (ONS) said.
It also flatlined during the second quarter of the year, after prior estimates showed 0.2% growth, painting a bleaker picture for the overall economy.
If GDP contracts between October and December then the economy will have entered a technical recession, which can be defined as two consecutive quarters of negative growth.
In an interview with The Telegraph, Sir James said wealth generation and growth had become “dirty words” as the nation’s political leaders emphasise cutting inflation.
The inventor, 76, told the paper: “Wealth generation and growth became dirty words.
“I’ve always believed that inflation isn’t quite the enemy everyone thinks it is. If you’ve got growth, a bit of inflation doesn’t matter.
“If you get inflation down and kill growth, I think you’re in trouble.”
Sir James also praised the aggressive, tax-cutting economic policies of former chancellor Kwasi Kwarteng and former prime minister Liz Truss.
“I’m disappointed we’re not going for growth,” he said.
“I was hopeful (with Ms Truss and Mr Kwarteng). I thought they were doing the right thing – I’m the only one who did.
“Kwarteng wasn’t raising taxes. He was going for growth, which I think is the right thing. It allows us to pay for things and generates wealth.”
Industries including film production, engineering and design and telecommunications showed a weaker performance during the third quarter than statisticians initially thought.
Chancellor Jeremy Hunt said the economic outlook should not be dampened by the worse-than-expected figures.
He said: “The medium-term outlook for the UK economy is far more optimistic than these numbers suggest.
“We’ve seen inflation fall again this week, and the OBR (Office for Budget Responsibility) expects the measures in the autumn statement, including the largest business tax cut in modern British history and tax cuts for 29 million working people, will deliver the largest boost to potential growth on record.”
Prime Minister Rishi Sunak had pledged at the start of 2023 to “grow the economy”.
Labour shadow chancellor Rachel Reeves said the revised GDP figures show he has failed to meet his promise.
She said: “Rishi Sunak is a Prime Minister whose legacy is one of failure. He failed to beat Liz Truss, he failed to cut waiting lists, he failed to stop the boats and now he has failed to grow the economy.
“Thirteen years of economic failure under the Conservatives have left working people worse off with higher bills, higher mortgages and higher prices in the shops.”
Darren Morgan, director of economic statistics at the ONS, said: “The latest data from both our regular monthly business survey and VAT returns show the economy performed slightly less well in the last two quarters than our initial estimates.
“The broader picture, though, remains one of an economy that has been little changed over the last year.”
UK Consumer Prices Index inflation fell to 3.9% in November, its lowest level for more than two years and driven by a fall in fuel prices.
By John Besley and Anna Wise, PA