STORY
The UK economy grew by 0.1 per cent in May, according to the latest official figures, giving the outgoing Government a small improvement after a fragile period for growth. Services provided the main support to the economy, while construction and production remained weaker.
The figures underline the limited room for manoeuvre facing the incoming Prime Minister and Chancellor. Rising energy costs, global uncertainty and weak productivity continue to restrict the pace of economic recovery.
Ministers are likely to present the figures as evidence that the economy is still expanding, but opposition parties and business groups are expected to focus on the underlying weakness. Burnham will take office under pressure to deliver growth without breaching Labour’s fiscal and tax commitments.