In a dramatic move that has sent shockwaves through Whitehall, Chancellor Rachel Reeves has launched a scathing critique of the UK's official data body, labelling its economic figures as 'shambolic' and demanding an urgent overhaul.
The newly appointed Chancellor has written a formal letter to the National Statistician, Professor Sir Ian Diamond, expressing serious concerns about the reliability of GDP data published by the Office for National Statistics (ONS). This unprecedented intervention signals the new government's determination to base its economic decisions on what it calls 'timely and accurate' information.
A System in Crisis
Reeves' criticism centres on what she describes as 'multiple and significant revisions' to GDP figures that have undermined confidence in the UK's economic reporting. The Chancellor highlighted particular concerns about how these revisions affect the government's ability to make informed policy decisions and accurately assess the state of the economy.
'Businesses and individuals across Britain deserve economic data they can rely on,' stated the Chancellor in her letter. She emphasised that trust in official statistics is fundamental to a well-functioning economy and effective governance.
The Call for Reform
The Treasury has confirmed that it is actively considering how the production of economic statistics can be improved. While the ONS operates independently of government, Reeves has made it clear that she expects swift action to address these concerns.
This development comes amid growing scrutiny of economic data quality following the pandemic, which exposed weaknesses in how quickly and accurately economic trends could be captured and reported.
Industry Reaction
Economic experts have expressed mixed reactions to the Chancellor's intervention. Some have welcomed the focus on improving data quality, noting that significant revisions to GDP figures have indeed created challenges for policymakers and businesses alike.
Others, however, have cautioned against political interference in independent statistical bodies, emphasising the importance of maintaining the ONS's autonomy and freedom from political pressure.
The controversy raises important questions about how economic data is collected, processed and published in the UK, and whether current methods are fit for purpose in a rapidly changing economic landscape.
