The Labour Party were left embarrassed yesterday after newly-released figures showed that the UK economy has grown at the fastest rate for ten years, more than double the rate that Labour and their supporters were predicting.
Between July and August this year, the UK economy grew at 0.8%, double the predicted 0.4%, although that's down on the previous quarter's growth of 1.2%. That's the fastest rate of growth for the British economy for that period of the year since the year 2000. The British economy is also outpacing is economic rivals again. Over the same period of time the French economy grew 0.7% and the US economy grew 0.6%, despite the fact that Britain came out of recession later. Throughout the late Nineties and the early Noughties the British economy regularly outperformed the French and German economies.
The economies of Ireland and Greece are still in recession.
The other piece of good news for the world's fifth largest economy yesterday was that credit agency Standard & Poor's upped its rating on the UK economy to a Triple A rating.
Chancellor of the Exchequer George Osborne said the growth figures and S&P's comments were a "double dose" of good news and justified the Coalition Government's savage spending cuts.
Shadow Chancellor Alan Johnson has said that the cuts will cripple the recovery. The Tories, however, accused him of "talking down" the British economy.
Labour must be hoping the UK goes back into recession just to prove that the Tories' plans for a healthier economy are wrong.
Here we grow
By STEVE HAWKES, Business Editor
and TOM NEWTON DUNN, Political Editor
27th October 2010
The Sun
and TOM NEWTON DUNN, Political Editor
27th October 2010
The Sun
New shoots ... UK leads the way in last quarter growth
BRITAIN'S economy grew at twice the expected rate between July and September in a huge boost to the Chancellor.
Talk of a double dip was blown out of the water as official figures revealed mini-booms in construction and manufacturing.
Economic output, or GDP, in the third quarter rose by 0.8 per cent - double the 0.4 per cent rate forecast by almost everyone in the City.
The construction sector is growing at its strongest pace since 1988.
Within hours influential credit agency Standard & Poor's upped its rating on the UK economy. It said Britain's Triple A rating was "stable".
John Hawksworth, chief economist at City giant PWC, said: "Reports of the death of the UK economy appear to have been greatly exaggerated."
George Osborne said the growth figures and S&P's comments were a "double dose" of good news - and justified his £81billion spending cuts.
He said: "It's a big vote of confidence in the UK and a vote of confidence in the Coalition Government's economic policies." He vowed to step up growth by slashing bottlenecks and barriers across every economic sector.
The Chancellor and PM David Cameron will meet cabinet ministers weekly to discuss what more can be done to free up businesses in their areas.
Transport secretary Philip Hammond played his part yesterday by giving the go-ahead to 16 new road projects.
The third quarter growth is slower than the 1.2 per cent recorded in the previous three months - April to June.
Labour said that showed growth was tailing off since they were ousted from power in May. Shadow Chancellor Alan Johnson warned the Chancellor's cuts could cripple the recovery.
But Tory MPs slammed Labour for "talking down the economy".
Royal Bank of Scotland chief economist Ross Walker, one of the only number-crunchers to predict 0.8 per cent, called the figures "encouraging".
thesun.co.uk