Starmer and Reeves’ robotic obsession with growth hides the true nature of the economy

Both Keir Starmer and Chancellor Rachel Reeves have been cheering on Office for National Statistics (ONS) UK growth figures for the first two quarters of 2025. But the centrist obsession with growth of anything at all costs hides the real picture. For instance, real estate and private healthcare have grown. But that means in part an increase in the rent we are paying to landlords along with an increase in the resources and expertise the private sector is taking away from the NHS.

On top of that, grotesque inequality means that work-based (where possible) redistribution should be of higher priority than growth. It would bring Reeves’ mantra of ‘rewarding working people’ from words to actual action. It would also help tackle the manufactured cost of living crisis, another important issue that the government could further solve through curbing big business profit.

UK growth: not great on its own terms

UK growth still can of course be beneficial depending what is growing, such as technological advancement and renewable energy. UK GDP growth has been estimated at 0.7% for the first quarter (Jan to March) and 0.3% for the second quarter (Apr to June). Overall, that’s significantly lower than the UK figures for 2024 where growth was 1.1%.

There was 2.1% growth in water and sewage management in the second quarter, which is not nearly enough from private water companies to address the UK’s crumbling waste water infrastructure.

Real estate grew by 0.03% in the first quarter, meaning more people are renting. And the latest figures from 2023 show a private healthcare boom to a record £12.4bn, up an entire £1bn from 2022. With Starmer expanding the use of the private sector within the NHS, that trend is set to continue. But the very existence of private healthcare crowds out and diminishes public healthcare, through poaching staff and technology.

Further, education output fell by 0.04% in the first quarter, reflecting cash strapped schools and universities.

Hiding the real picture

In a society where 1% own more wealth than 70%, redistribution should be of higher importance than growth – not least in the UK. The problem is exemplified through the amount of GDP that goes to profit compared to actual work. As of 2023, the rich extracted a whopping 45% of the UK’s entire national income in profiteering rent, meaning everyone could almost be twice as well off. That is known as ‘sur plus labour’, where the value of the work you do is worth £24 but you are paid £12.

In short, growth is not the best metric for how one values a country. And even on the centrists own terms, it’s not going that swimmingly. We need re-imagine society.

Featured image via the Canary