Stuck in the Slow Lane: Why Labour’s "Anti-Growth" Budgets are Failing British Prosperity

​The latest GDP figures for the final quarter of 2025 have confirmed what many households and small business owners already felt on the ground: the UK economy remains stubbornly stuck in the slow lane. With a marginal increase of just 0.1%, the promised "kickstart" to national growth has failed to materialize, leaving the UK vulnerable to global shocks and domestic stagnation.

​For the Liberal Democrats, these figures are not just a statistical disappointment; they are a direct indictment of the Government’s failure to address the structural barriers holding back the British economy.

​A Failure of Ambitious 
The Liberal Democrats are clear about where the blame lies:
​"Today's figures confirm that after Labour's two anti-growth budgets the economy is still stuck in the slow lane. Yet again the Government has failed to deliver the strong growth they promised, whilst households are being hammered by Trumpflation."Daisy Cooper MP -Treasury Spokesperson,

​The "Trumpflation" mentioned refers to the rising costs associated with shifting global trade dynamics, a volatility that has been compounded by domestic indecision. Cooper argues that by failing to provide a radical departure from the status quo, the Government is leaving the UK exposed to "global chaos... cheered on by Nigel Farage and Kemi Badenoch."
Rewrite 


​Tearing Down Trade Barriers: The Case for a New Customs Union
​The Liberal Democrats have long argued that you cannot have a high-growth economy while maintaining friction-filled trade with our closest neighbors. The "red tape" generated by current trade arrangements acts as a hidden tax on British exporters, particularly small and medium-sized enterprises (SMEs).

​To fix this, the Liberal Democrats are calling for a pragmatic, step-by-step approach to rebuilding our relationship with Europe, centered on negotiating a new UK-EU customs union.

​The Goal: To eliminate most border checks and bureaucratic hurdles that have plagued the food, drink, and manufacturing sectors since 2021.
​The Impact: Reducing costs for businesses, lowering prices for consumers, and restoring the "just-in-time" supply chains that once made the UK a global leader in efficiency.

​"The Government needs to get Britain growing again by negotiating a new UK-EU customs union to rip up red tape holding British businesses back." Daisy Cooper MP -Treasury Spokesperson,

​Read more about the Liberal Democrat plan to fix the UK's trade relationship with Europe.
https://www.libdems.org.uk/conference/motions/spring-2022/f13 

​Revitalising the High Street
​While trade is the engine of the macroeconomy, the High Street is its heart. Liberal Democrats believe that growth must be felt in every community, not just in the City of London. However, current tax structures—specifically the antiquated Business Rates system—punish physical retailers while letting online giants off the hook.

​To stimulate the high street, the Liberal Democrats propose:
​Abolishing Business Rates: Replacing them with a Commercial Landowner Levy. This shifts the tax burden from the tenant to the landowner, incentivising the use of empty shops and lowering the entry barrier for new entrepreneurs.

​Investment in Local Infrastructure: Ensuring that town centers are accessible, green, and safe to encourage footfall.

​Support for Independent Businesses: Providing targeted tax breaks for small businesses that are currently struggling under the weight of rising energy costs and inflation.

​Explore our policies on saving the High Street and reforming business taxes. www.libdems.org.uk/news/article/revitalising-town-centres-and-high-streets 

​Protecting Households from Global Instability
​Beyond the structural issues of trade and tax, the Liberal Democrats are sounding the alarm on the humanitarian and economic fallout from the Iran war. The conflict has sent shockwaves through energy markets and global shipping lanes, further squeezing the "pockets of British.

The Liberal Democrats believe that true economic leadership requires "urgent measures to tackle the huge impact" of this conflict. This includes a more robust windfall tax on oil and gas giants to fund support for those facing skyrocketing bills.

​The Liberal Democrat Alternative
​The message from the Liberal Democrats is clear: growth will not happen by accident, nor will it happen through timid "business as usual" budgets.

-​To end the cost of living crisis, the UK must:
​-Rip up trade red tape by rejoining the Customs Union.
-​Revive our High Streets through radical tax reform.
-​Protect the vulnerable from the fallout of global conflict.

 "Kickstarting growth is the only way we can end the cost of living crisis." It is time for a government that has the courage to take those steps. Daisy Cooper MP.

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