Chancellor Philip Hammond has admitted that UK households have been hurt by the weakness of the pound in the wake of the referendum, as the UK economy appears to slow.
Hammond confirmed that businesses and consumers alike are being affected by the lack of strategy over Brexit, with insecurity over the future of the UK’s economic strength leading to a slowdown in growth.
The UK grew by just 0.3 percent in the second quarter, according to the Office for National Statistics, after a figure of 0.2 percent in the first three months of the year.
“Consumers are being affected by the inflation that was created by the depreciation of the currency in the autumn of last year. That will pass through the economy, but I absolutely recognise it’s painful as it’s passing through the economy,” Hammond said in an interview with ITV News.
Government statisticians have commented on the “notable slowdown” in growth seen in the first half of the year, with several key economic figures indicating that, despite the UK’s better-than-expected performance in the wake of Brexit, uncertainty over the country’s future may be beginning to have an effect.