British Prime Minister Keir Starmer called for a “muscular state” to renew the country’s economy as the Labor Party struggles to spur growth.
“We do need a more muscular state, freed from the red tape that stops us building, growing our economy from the grass roots, renewing every town and city on these islands,” Starmer said during his speech today at the Labour Party conference in Liverpool, England. “It comes back to growth. So much of it comes back to economic growth.”
However, the United Kingdom has experienced sluggish economic expansion since Starmer’s Labour Party won the national election in 2024. Gross domestic product (GDP) slowed in the second quarter of this year, driven by a decline in production and reduced consumer spending.
GDP eased to 0.3% in the quarter ending in June, confirming a decline from 0.7% in the previous quarter, according to data today from the Office for National Statistics (ONS). The production sector’s GDP fell by 0.8% in the quarter, following a 0.6% increase in the first quarter – both figures were revised lower.
The FTSE 100 ended the quarter today, hitting an all-time high, as Starmer reiterated a commitment to fiscal responsibility. The FTSE 100 index closed up 50.59 points, 0.5%, at 9,350.43, beating its previous record close of 9,321.40 in August.
Starmer said that “fixing our public finances, investing in new infrastructure, helping our public services off their knees … will be better for growth.”
Starmer Says Reform UK Turning to ‘Politics of Grievance’
However, Starmer’s Labour government has faced increasing public discontent over its fiscal, immigration, and policing policies. This has led to a sharp drop in public support.
If general elections were held today, the right-leaning Reform UK party would win.