ECONOMIC GROWTH IN COALITIONS FIRST SIX MONTHS (South Dorset Liberal Democrats)

South Dorset Liberal Democrats <info@southdorsetlibdems.org.uk>

ECONOMIC GROWTH IN COALITIONS FIRST SIX MONTHS

October 27, 2010 7:02 PM
In Guardian 27-10-10

Britain's economy grew twice as fast as expected over the summer, providing a boost for George Osborne as he fights Labour warnings that the coalition is jeopardising growth with the the most drastic fiscal retrenchment in a generation.

The chancellor today welcomed a "double dose of good news" after GDP grew by 0.8% in the past three months, and the ratings agency Standard & Poor's confirmed Britain's AAA credit rating. Britain, which is now considered a safe haven, is to be taken off the agency's list of countries on "negative watch".

Osborne said: "What you see today, in an uncertain global economic environment, is Britain growing, growing strongly, the strongest growth we have seen in this part of the year for a decade, and also our country's credit rating being secured. That is a big vote of confidence in the UK, and a vote of confidence in the coalition government's economic policies."

The chancellor was speaking after the Office for National Statistics reported that GDP grew in the third quarter of 2010 (July, August and September) by 0.8%, double the 0.4% expected by many in the City.

Osborne told the cabinet today that the ONS figures showed "broad-based growth", with 80% coming from the private sector. This is important for the government, which has based its strategy on private businesses picking up the slack as public spending cuts are introduced from next April.