Editorial 07.02.25
Friday’s front pages report on the Bank of England’s bleak forecast for the UK economy sparked widespread concern, with growth now expected to be just 0.75% this year.
Rachel Reeves is under fire with some of the papers speculating on her future in the role of chancellor and the fears of stagflation – a combination of stagnant growth and rising inflation—are dominating the narrative.
While the interest rate cut to 4.5% offers some relief, the overall economic outlook remains challenging. The papers say the government faces tough choices including potential tax hikes or spending cuts, to stabilise the economy.
Elsewhere, there’s some showbiz news dominating tabloids, including reviews of the new BBC TV series Amandaland, an exclusive interview with the former girlfriend of Liam Payne and coverage of recent allegations made against a TV star.
The back pages are dominated by Liverpool’s 4-0 win over Spurs to book their place in the Carabao Cup final at Wembley.
‘Grim outlook for UK economy’
The British economy is facing a storm of warnings, and the papers are not holding back. The Bank of England’s decision to slash its growth forecast for the year has sent shockwaves through the media, with many pointing fingers at Chancellor Rachel Reeves and the government’s economic policies.
‘Significant blow to chancellor,’ says the FT.
The Financial Times leads with the news that the Bank has halved its growth forecast, now predicting a meagre 0.75% expansion for the year. This downgrade is described as a significant blow to Chancellor Reeves, who has made economic growth her top priority. The FT also notes that the Bank’s decision to cut interest rates to 4.5% has provided a boost to the FTSE 100, but the overall outlook remains bleak.
‘Chancellor’s job on the line,’ says the Express.
The Daily Express takes a more dramatic tone, suggesting that Reeves’ job could be on the line. Speculation is rife that she might be replaced by Home Secretary Yvette Cooper, as the government faces mounting pressure to address the economic slowdown.
‘New squeeze on living standards a major setback for Reeves,’ says The Times.
Meanwhile, The Times highlights the Bank’s warning of a new squeeze on living standards, calling it a setback for Reeves. The paper notes that the Bank has described growth as weak and productivity as “tepid,” painting a grim picture for the months ahead.
‘New era of stagflation,’ says the Mail.
The Daily Mail doesn’t mince words, directly blaming Reeves for what it calls a “new era of stagflation.” The paper argues that her recent budget has led to a dangerous combination of stagnant growth and rising inflation, a scenario that spells trouble for households and businesses alike.
‘Stagflation fears are growing,’ says The Guardian.
The Guardian echoes these concerns, noting that fears of stagflation are growing. The paper reports that Reeves’ growth plan has suffered a “double blow,” but it also quotes Prime Minister Keir Starmer, who insists that turning the economy around was never going to happen overnight. Starmer claims the challenging outlook only strengthens his resolve to push forward with the government’s agenda.
‘Pressure mounting on Reeves to revive economy,’ says The i.
The i newspaper focuses on the pressure mounting on Reeves to revive the “flagging economy.” While Bank of England Governor Andrew Bailey has expressed support for her growth plans, the paper suggests that tough decisions—such as raising taxes or cutting spending—may be necessary to meet fiscal targets.
‘Bloated state to blame,’ says the Daily Telegraph.
The Daily Telegraph shifts the blame to the “bloated state,” arguing that the expansion of the public sector since the pandemic has not been matched by productivity gains. The paper highlights comments from Andrew Bailey, who pointed out that the addition of half a million public sector workers has failed to deliver the economic boost many had hoped for.
‘Allegations against TV chef’
‘Allegations made against TV chef Gino D’Acampo,’ reports the Mirror.
The Daily Mirror leads on showbiz news reporting allegations have been made against TV chef Gino D’Acampo made “sexual and aggressive comments” to a “string of women at work.” He has denied the allegations.
‘Payne wanted One Direction to reunite,’ says The Sun.
The Sun leads with an exclusive interview with the girlfriend of the late singer Liam Payne. Kate Cassidy tells the paper the star was “secretly considering” a reunion with his One Direction bandmates before his death last year.
‘Relentless Reds book Wembley final’
The Mirror says “relentless Reds” book Wembley final. “Reds run riot to set up Toon clash,” says the Daily Star, whilst the Telegraph says Arne Slot’s first trophy is now within reach.