I joined Mike Graham on the The Mike Graham Show to discuss the latest economic figures, Labour’s struggling housebuilding ambitions, the difficulties facing young people entering the jobs market and the continuing squeeze on household finances.
Watch our full conversation below.
Britain’s Economy Barely Grows
The latest Office for National Statistics figures showed the UK economy growing by just 0.1% in August 2026.
Growth over the three months to August was stronger at 0.7%, but look beneath that headline and the picture is far less encouraging.
While services helped drive overall growth, construction continued to struggle.
And that’s particularly concerning for a government that promised to get Britain building again.
Labour’s 1.5 Million Homes Promise
Labour entered government promising to deliver 1.5 million new homes in England during this Parliament.
More than two years later, the numbers aren’t looking encouraging.
The latest ONS figures show:
Construction output fell 1.0% in the three months to August.
Private new housing work fell 3.2% over the same period.
Construction output declined for four consecutive months, including a further 0.2% fall in August.
Meanwhile, the latest government housing supply estimates paint a difficult picture:
208,600 net additional homes in England during 2024–25.
196,900 estimated during 2025–26.
437,900 estimated since the start of Parliament in July 2024, up to 20 September 2026.
That last figure includes homes delivered during the current financial year and excludes those completed before this Parliament began.
The figures for 2025–26 onwards are provisional estimates, but they suggest that just 29% of Labour’s 1.5 million homes target has been achieved.
That leaves another 1.06 million homes to deliver before the end of Parliament.
And it’s not simply about meeting a political target.
Britain desperately needs more housing to tackle affordability, relieve pressure on rents and give younger generations a realistic chance of getting onto the property ladder.
Labour promised to get Britain building. Yet construction is contracting, and housebuilding needs to accelerate substantially to meet its target.
Jobs, Hospitality and Young Workers
We also discussed the pressure facing Britain’s hospitality sector.
The latest figures showed accommodation and food services output falling by 2.1% in August, another disappointing month for businesses already facing substantial costs.
Higher employers’ National Insurance contributions, rising wage bills and pressure on margins have made employing people more expensive.
My concern is what this means for young people trying to enter the workforce.
Businesses need an incentive to take a chance on someone without years of experience. When the cost of employment rises, particularly for entry-level positions, employers have another reason to think twice before recruiting.
There’s little point celebrating higher minimum wages if businesses become increasingly reluctant to employ young people in the first place.
The challenge for government is finding the right balance between improving pay and ensuring employers are willing to create opportunities.
Getting young people onto the jobs ladder should be a priority, not an afterthought.
The Cost of Living Hasn’t Gone Away
We also revisited my recent Stat of the Nation analysis examining how much the cost of everyday essentials has increased since 2019.
Energy, food, rents and transport have all become substantially more expensive, eating into household pay increases and putting pressure on living standards.
The Bigger Picture
Labour promised economic growth, more homes and better opportunities.
But promises are one thing. Delivery is another.
With construction contracting, businesses facing rising costs and more than a million homes still needed to meet its housing target, the government has some serious challenges ahead.
Britain needs investment, businesses willing to employ people and a housing sector capable of delivering the homes the country desperately needs.
Britain doesn’t need another housing target. It needs houses actually being built.
Thanks for reading Stat of the Nation. I break down the statistics behind the headlines, cutting through the political spin to explain what’s really happening across Britain.
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✍️ Jamie Jenkins
Stats Jamie | Stats, Facts & Opinions
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