Britain thrillingly feels like a country bouncing back
IT’S relatively rare to find much about Britain to be genuinely optimistic about. For years it seems we have grappled with the global pandemic, a flatlining economy, underfunded and increasingly overstretched public services, and a wave of immigration that has not delivered the prosperity it promised.
The future seemed bleak. Until now.
Alongside the glorious weather, the sunshine has also brought a ray of hope.The latest GDP figures showed the economy grew by 0.6 per cent in the first three months of the year – taking the UK out of recession.
This is the fastest growth in two years and more than analysts were expecting, with many speculating that the worst is now behind us. Even the Bank of England boss Andrew Bailey admitted that the UK economy is finally “turning a corner”.
Will this be enough for a victory lap from Rishi Sunak? Of course not.
But many households will take comfort in the fact we are no longer in a “technical recession” – as Chancellor Jeremy Hunt put it. Growth provides hope for the extra funding many of our public services so desperately need.
A growing economy means we can finally stop the UK from circling the drain. The Chancellor also highlighted the fact that energy costs are falling, with unit prices for gas and electricity falling by 19 per cent and 14 per cent respectively.
FOR struggling households who have had to choose between heating and eating, this news will be music to their ears. British businesses too, saddled with some of the highest energy costs in the world, will appreciate this.
ONS data revealed that about 25 per cent of firms cited energy prices as the main reason for price increases. Lower energy bills for them should hopefully lead to more competitive pricing – a win for everyone.
Even the usual naysayers and party poopers admit that this is nothing to scoff at.
Moreover, inflation has fallen to its lowest level in two and a half years, driven largely by slowing food price rises.
This has fuelled hope the Bank of England will cut interest rates this summer, thus reducing pressure on people’s mortgages.
While Andrew Bailey says the Bank needs to “see more evidence” that price rises have slowed further, the current direction of travel is an optimistic one. If inflation continues to fall as expected, cuts in August or September appear to be the most likely scenario.
Wages, too, have risen faster than inflation by the most for two years, with average earnings (excluding bonuses) growing by 6.1 per cent, compared to inflation at 4 per cent. For the first time in years, people will feel less of the pinch for every pound they earn and this, hopefully, will feed into a more dynamic economy, boosting consumer spending, which reached its lowest levels since 2018 at the end of last year.
The Chancellor conveniently slipped in a reminder that the tax cuts announced this year are “worth about £900” for the average full-time earner. A rather optimistic estimate – especially when you factor in other tax changes.
I’m sure many Britons would prefer a rise in tax thresholds which for years have dragged many pensioners and low earners into higher tax brackets. But beggars can’t be choosers.
And to top off the feel-good spirit, Britain finally has a sunny weekend to look forward to. After what seems like months of gloomy, overcast skies, low temperatures and record rainfall, this weekend promises to be a sunny one almost all over the UK. So bring out the barbecues.
Even abroad, Britain is predicted to have a great summer ahead.
TEAM GB has been tipped to bring home 66 medals at the Paris Olympics, with a long list of serious contenders.
Among the promising athletes are Dina Asher-Smith, Keely Hodgkinson, Tom Pidcock, Katarina JohnsonThompson, Katie Archibald, Tom Daley, and Zharnel Hughes – with the latter predicted to win the Men’s 100m race by no less a star than Usain Bolt. If that shining endorsement is not enough to excite the country, I don’t know what is.
Finally, Britain feels thrillingly like a country bouncing back.
Is now the time to be complacent? No, not yet, but every once in a while, it’s important to let our hair down and smell the roses.
Britain is on the mend. The weather is great, and we have the Olympics to look forward to – so cheer up and enjoy your weekend.
‘Growth provides hope of extra funding for our public services’