The government can use growing GDP as evidence that it is doing a good job of managing the economy. Likewise, if GDP falls, opposition politicians say the government is running it badly.
If GDP is going up steadily, people pay more in tax because they’re earning and spending more.
This means more money for the government, which it can choose to spend on public services, such as schools, police and hospitals.
When the economy shrinks and a country goes into recession, these things can go into reverse.
Governments tend to get less money in tax, which means they may decide to freeze or cut public spending. Or taxes may rise.
In 2020, the Covid pandemic caused the most severe UK recession for more than 300 years, which forced the government to borrow hundreds of billions of pounds to support the economy.