Saudi Press

Saudi Arabia and the world
Saturday, Aug 23, 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

Saudi Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
×