Stagnation nation: governing the UK when 'there is no money'

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Jeremy Hunt, Britain's chancellor, will look on the bright side this week. He has no choice: his Autumn Statement comes at the start of an election year in which menacing clouds hang over the economy and a Conservative government is languishing in the opinion polls.

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20 Nov 2023

Jeremy Hunt, Britain’s chancellor, will look on the bright side this week. He has no choice: his Autumn Statement comes at the start of an election year in which menacing clouds hang over the economy and a Conservative government is languishing in the opinion polls.

But the challenge for Hunt is that he is presiding over a stagnation nation. The Bank of England forecasts flatlining growth next year — an election is expected by next autumn — and little improvement in 2025. A recession is possible, it cautions.

At the same time, many of the traditional escape routes for a chancellor are blocked off. Lord Philip Hammond, a former Tory chancellor, says doing politics in an era of low growth and little money is “very difficult”. He adds: “The politician who is honest about the