British taxpayers no longer suffering personal recession, say TaxPayers’ Alliance

For immediate release

• TaxPayers’ Alliance says personal recession is finally over in response to latest GDP figures from Office for National Statistics.
• Personal recession first declared by the campaign group in February 2025.
• Figures from ONS show GDP per capita growth of 0.5 per cent in latest quarter.
  
  

After two consecutive quarters of negative GDP per capita growth, British taxpayers are finally out of a personal recession with the latest figures from the Office for National Statistics (ONS) showing that living standards are finally increasing. In January to March 2025, GDP per capita increased by 0.5 per cent and overall GDP increased by 0.7 per cent.

The TaxPayers’ Alliance first declared a personal recession in February 2025 when figures from the ONS confirmed that despite overall GDP growth in October to December 2024, GDP per capita had fallen by 0.1 per cent in October to December and 0.3 per cent in July to September 2024. Analysis by the group found that this was the third “personal recession” over the last decade, with two previous personal recessions in 2020 and 2023-24.

The TPA are calling for GDP per capita to be placed at least at parity with overall GDP figures in government policy-making and are calling for a specific policy response to limit the burden on taxpayers during personal recessions, including:

1. Limits on benefit increases
2. Departmental spending reviews 
3. A visa category review focusing on increasing the proportion of high skilled immigrants as a percentage of overall immigration
4. Public sector pay freeze

​​Change in UK quarterly GDP and GDP per capita, Q3 2024 to Q1 2025 (%)

Commenting, John O’Connell, chief executive of the TaxPayers' Alliance, said:

“It’s undeniably good news that British taxpayers are no longer mired in the misery of a personal recession.

“Until now, headline figures showing economic growth were largely meaningless to the millions of households suffering from declining living standards combined with a record high tax burden. Even today, overall growth is healthier than GDP per capita growth.

“The Treasury should use this as an opportunity to start prioritising GDP per capita over overall GDP, particularly given the Labour government’s newfound desire to bring down immigration.”

TPA spokespeople are available for live and pre-recorded broadcast interviews via 07795 084 113 (no texts)

Media contact:

Elliot Keck
Head of Campaigns 
elliot.keck@taxpayersalliance.com
24-hour media hotline: 07795 084 113 (no texts)

Notes to editors:

1. Founded in 2004 by Matthew Elliott and Andrew Allum, the TaxPayers' Alliance (TPA) campaigns to reform taxes and public services, cut waste and speak up for British taxpayers. Find out more at www.taxpayersalliance.com.
2. TaxPayers' Alliance's research council.
3. All figures come from the Office for National Statistics. The latest GDP quarterly release was for January to March 2025 and can be found here.
4. The TPA first declared a personal recession, defined as two consecutive quarters of negative GDP per capita growth, in February 2025.