Beautiful Virgin Islands

Monday, Sep 01, 2025

UK is poorer as a country, says Michael Gove

UK is poorer as a country, says Michael Gove

The UK is poorer than it would have been, partly due to the war in Ukraine, but also the pandemic, Levelling Up Secretary Michael Gove has admitted.
But he said ministers were taking action on the soaring cost of living, including giving help on energy bills.

The head of the independent forecaster, the Office for Budget Responsibility (OBR), said living standards were seeing their biggest squeeze on record.

Richard Hughes said Brexit had been similar to the pandemic in its impact.

"It's a shock to the UK economy of the order of magnitude to other shocks that we've seen from the pandemic, from the energy crisis," he told the BBC.

Poor productivity had also hurt growth, he said.

And he warned living standards would not return to pre-pandemic levels for another five to six years.

Asked whether he agreed with the OBR's assessments, Mr Gove said economic forecasting was "a very difficult exercise". He added that the UK was dealing with "the aftershocks of two significant events".

"[There's] both the war in Ukraine, the first time we've had war on this scale on the continent in Europe since the Second World War, and the Covid pandemic, the biggest global health pandemic since the end of the First World War," he told the BBC's Sunday with Laura Kuenssberg programme.

"They have had a huge effect on our economy and on others' economies."

Mr Gove denied that the government was to blame after 13 years in power, but added: "One can always do better, yes."

However, he insisted ministers were taking action to address soaring inflation - the rate at which prices rise - by taxing oil and gas firms' profits and lowering household energy bills.

He also said the Budget had taken steps to help people back to work and to help families, including with childcare.

The OBR forecasts that inflation will fall below 3% this year - down from 10.4% currently - as food and energy prices rise less quickly.

But speaking on the same programme, OBR chairman Richard Hughes said the outlook was volatile given Britain was a net importer of food and energy - the prices of which were set in global markets.

Mr Hughes added that the longer term outlook for the economy was bleak, with people's real spending power - allowing for inflation - not forecast to recover to pre-pandemic levels until the end of the decade.

Mr Hughes blamed a range of issues for holding back the economy, saying: "We've lost around 500,000 people from the labour force, we've seen stagnant investment since 2016 and also our productivity has slowed dramatically since the financial crisis and not really recovered."

He also said that overall output was forecast to be 4% lower than it would have been as a result of leaving the EU.

Last week the Bank of England put up interest rates for the 11th time since December 2021 as it continued its battle to ease inflation.

The decision to lift rates to 4.25% from 4% came after the inflation rate rose unexpectedly last month to 10.4%.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
Israeli Airstrike in Yemen Kills Houthi Prime Minister
Ukrainian Nationalist Politician Andriy Parubiy Assassinated in Lviv
Corporate America Cuts Middle Management as Bosses Take On Triple the Workload
Parents Sue OpenAI After Teen’s Death, Alleging ChatGPT Encouraged Suicide
Amazon Faces Lawsuit Over 'Buy' Label on Digital Streaming Content
Federal Reserve Independence Questioned Amid Trump’s Push to Reshape Central Bank
British Politics Faces Tumultuous Autumn After Summer of Rebellions and Rising Farage Momentum
US Appeals Court Rules Against Most Trump-Era Tariffs
UK Sought Broad Access to Apple Users’ Data, Court Filing Reveals
UK Bank Shares Dive Over Potential Tax on Sector
Germany’s Auto Industry Sheds 51,500 Jobs in First Half of 2025 Amid Deepening Crisis
Bruce Willis Relocated Due to Advanced Dementia
French and Korean Nuclear Majors Clash As EU Launches Foreign Subsidy Probe
EU Stands Firm on Digital Rules as Trump Warns of Retaliation
Getting Ready for the 3rd Time in Its History, Germany Approves Voluntary Military Service for Teenagers
Argentine President Javier Milei Evacuated After Stones Thrown During Campaign Event
Denmark Confronts U.S. Diplomat Over Covert Trump-Linked Influence in Greenland
Starmer Should Back Away from ECHR, Says Jack Straw
Trump Demands RICO Charges Against George Soros and Son for Funding Violent Protests
Taylor Swift Announces Engagement to NFL Star Travis Kelce
France May Need IMF Bailout, Warns Finance Minister
Chinese AI Chipmaker Cambricon Posts Record Profit as Beijing Pushes Pivot from Nvidia
After the Shock of Defeat, Iranians Yearn for Change
Ukraine Finally Allows Young Men Aged Eighteen to Twenty-Two to Leave the Country
The Porn Remains, Privacy Disappears: How Britain Broke the Internet in Ten Days
YouTube Altered Content by Artificial Intelligence – Without Permission
Welcome to The Definition of Insanity: Germany Edition
Just a reminder, this is Michael Jackson's daughter, Paris.
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
×