Cheers! Hat trick of good news for Britain
GEORGE Osborne hailed a “hat trick of good news” yesterday after a rash of official data showed the economic recovery is getting stronger.
Revised figures from the Office for National Statistics concluded the UK economy grew by a healthy 2.8 per cent last year – up from an initial estimate of 2.6 per cent.
Meanwhile separate ONS figures revealed increases in both household disposable income and spending.
The triple dose of upbeat data was seized upon by the Tories as confirmation that their policies are working.
Speaking on the General Election campaign trail, the Chancellor said: “Today we’ve got a hat trick of good news about the British economy.
“And with 37 days to go to the election it’s another sign that changing course would put recovery at risk.
“We’ve had a significant upgrade to GDP, the highest consumer confidence for over 12 years and confirmation that living standards are higher than they were at the last election.”
Labour hit back by claiming the figures showed living standards were rising at the lowest level since the 1920s.
The revised figures for Gross Domestic Product showed growth was stronger in the last three months of 2014 than previously thought as Britain benefited from a rise in exports.
GDP per head in 2014 rose by 2.2 per cent but it remained 1.2 per cent lower than before the economic downturn.
Real- terms household disposable income increased by 0.1 per cent. It was 2.2 per cent above its pre- economic downturn level.
Household spending rose 0.6 per cent – or £ 1.6billion – from October to December.
But there were signs that some households were still dipping into savings.
Labour shadow chancellor Ed Balls, out campaigning in Swindon, said: “This is a Government which has presided over five years when wages have not kept pace with rising prices and family bills.”
But Lib Dem chief secretary to the Treasury Danny Alexander said “this upward revision in GDP is further evidence that our recovery plan is working”.
“Handing back control of our economy to either Labour or the Tories in government on their own in this election will put all this hard- earned progress at risk,” he added.
David Kern, chief economist at the British Chambers of Commerce, called the upgrade in growth “positive” but warned that a greater contribution from exports and growth was needed.
YESTERDAY was a boost for George Osborne with official data showing economic growth was higher last year than initially thought, disposable incomes are on the rise and the people of Britain are more confident about the future. All of this will be comforting for a party staking its future on its reputation for economic competence.
At times during the last parliament the Tories’ plans were lambasted on all sides with naysayers at home and abroad claiming that the economy would be pushed back into recession. But they stuck to their guns, kept to their plans and delivered the fastest growing major economy in the world.
While coalition politics left many traditional Conservative voters disappointed it is undeniable that on the economy David Cameron and George Osborne have shown leadership and vision. Whether the British people are grateful enough for their efforts remains to be seen.