Starmer's Economic Ambition for Britain

LONDON (Reuters) – British Prime Minister Keir Starmer stated on Thursday that he has not diluted his ambition for Britain to become the fastest growing economy in the Group of Seven (G7) nations, outlining methods to assess the government's progress.

The government will now "aim" for the fastest economic growth per capita within the G7 advanced economies, according to a document detailing Starmer's plans, shifting from its previous characterization as a "goal."

Britain's government had previously committed to achieving the fastest growth in per-capita GDP in the G7 for two consecutive years by the end of the parliament, a feat yet to occur based on OECD records since the 1970s.

Starmer emphasized that he remains committed to the growth target and highlighted the importance of enhancing people's living conditions. "Growth is fundamentally important; it remains the mission. We've doubled down on it, but growth in the abstract doesn't feel the same, doesn't mean the same thing, as people feeling they're better off," he remarked.

He also vowed to improve living standards across all regions of the United Kingdom by the end of the parliamentary term.

According to the Institute for Fiscal Studies, a think tank, household disposable income, adjusted for inflation, increased by an average of just 0.3% per year from 2019 to 2024, marking the worst parliamentary term for living standards since the 1950s.

The Office for Budget Responsibility, which provides forecasts that inform government budgets, anticipates only a slight improvement during the ongoing parliamentary term, which is poised to be the second-worst period for growth in disposable income.

Labour secured a significant majority in July, marking its first time in power in 14 years, but has since fallen behind the opposition Conservative Party in some opinion polls.