Starmer's Economic Vision: Aiming Beyond GDP

British Prime Minister Keir Starmer aims to gauge economic progress using household disposable income and GDP per capita. The government targets the fastest economic growth per capita among G7 nations, despite earlier challenges. It intends to enhance living standards nationwide by the parliamentary term's end.

British Prime Minister Keir Starmer has outlined his government's strategy to benchmark economic progress by evaluating household disposable income and GDP per capita over the current five-year parliamentary term.

The revised goal for achieving the fastest economic growth per capita among the G7 nations represents a shift from a previous, more definitive pledge, according to new governmental documents. The commitment now focuses on enhancing living standards across all regions in the UK by the end of the term.

According to the Institute for Fiscal Studies, real household disposable income saw minimal growth between 2019 and 2024, marking a historic low since the 1950s. Forecasts from the Office for Budget Responsibility predict only a slight improvement, challenging Starmer's vision amidst broader economic pressures.

(With inputs from agencies.)