Andy Burnham given early boost ahead of becoming PM as UK economy does better than expected

Andy Burnham given early boost ahead of becoming PM as UK economy does better than expected Official figures show UK economy grew in May but experts warn PM-to-be Andy Burnham faces a series of "tough choices" when he starts, among them what taxes may have rise Andy Burnham got an early boost as figures revealed the UK economy did better-than-expected in In May. The Office for National Statistics said gross domestic product - the value of everything the country churns out - grew 0.1%, after the same sized fall in April and beating predictions that it would be flat. The growth - albeit small - will help Mr Burnham as be prepares to take over as PM and appoint his new cabinet, with Shabana Mahmood now seen as the front-runner for the key role as Chancellor. The ONS said output in the all-important service sector - everything from banks to restaurants - grew by 0.3% in May, which was partly offset by falls of 0.5% in production and 0.8% in construction. In the three months to May, GDP rose 0.7% after upwardly revised growth of 0.8% in the three months to April. The ONS said the Middle East conflict had been flagged by businesses across a raft of sectors for having impacted activity, including some manufacturing industries, hospitality firms, travel agencies and entertainment companies. “A common theme of comments received by the monthly business survey was disruption in global supply chains because of the conflict in Iran,” according to the ONS. Experts at Pantheon Macroeconomics said the May increase puts the economy on track for growth of 0.3% overall in the second quarter, down from growth of 0.6% in the first three months. Pantheon economist Rob Wood said the resilience so far means interest rates are set for a “prolonged period” on hold, but added “solid growth is one reason that a hike is more likely than a cut”. The Bank of England will next decide on rates on July 30, when it will also publish its latest quarterly forecasts on the economy. Danni Hewson, head of financial analysis at investment platform AJ Bell, said: “For incoming prime minister Andy Burnham, it’s a positive note to begin on. But 0.1% growth is hardly cause for celebration and certainly nowhere near the momentum needed if ordinary people are going feel the country is working for them. “Mr Burnham will face tough choices when he finally gets his feet under the desk at Number 10 and there’s been no shortage of speculation and pitch rolling ahead of what many are calling his coronation.” TUC General Secretary Paul Nowak said: “Better growth in our economy is good news and essential for boosting jobs and incomes. But despite welcome improvements, the outlook remains uncertain - and up and down the country too many working people are still struggling to get by. “Donald Trump’s illegal war has sent energy prices through the roof – and comes after years of bills increasing sharply. “That’s why the new prime minister must urgently show working people that this government is on their side by making living standards his number one priority. That means cutting energy bills for most households - paid for by taxing banks’ eyewatering excessive profits. “This common-sense step would put more money back in people’s pockets, give families the confidence to spend on the high street and support the economy.” Fergus Jimenez-England, an associate economist at the National Institute of Economic and Social Research (Niesr), said the incoming Prime Minister will need to make economic stability a top priority. “Today’s data confirm that growth remains fragile,” he said. A Treasury spokesperson said: “We have the right economic plan which has put the UK in a much stronger position than two years ago with the fastest growth in the G7 in the first quarter and the OECD (Organisation for Economic Co-operation and Development) agreeing that we have restored stability.” Both the OECD and the International Monetary Fund recently said UK growth would be better than first feared in 2026, with upgrades to the outlook.