George Osborne received some news that was long overdue about the growth of the UK economy – it grew twice as fast as expected over the summer months. What this means for Britain is a return to a AAA rating by Standard and Poor, and it is now off of the countries in negative watch list. The other bit of good news was that GDP grew 0.8 per cent during the last three months.
Osborne was pleased about the growth figures, saying: “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 growth in GDP was reported by the Office for National Statistics, which also mentioned construction was the shining star sector of the UK economy during the last three months.
The boost from the construction sector came mainly from contract signings held before the latest spending review. Home building and commercial construction remain weak.
Chancellor Osborne has informed ministers that the economic affairs committee will maintain a “ruthless focus on growth”. The committee will examine each sector of the economy and discover solutions which are preventing optimum growth.
David Cameron, prime minister, outlined the government’s plans for growth during a CBI conference speech earlier this week. He is facing a cut in public spending by 81 billion pounds by the year 2015.
The UK national plan is to “update and modernise” the infrastructure by utilizing 200 billion pounds of public and private investment.