Official statistics to be released today are expected to show that economic growth fell to about 0.2 per cent in the second quarter of this year.
Last night it emerged that the top civil servant at 10 Downing Street has raised concerns with the Treasury about George Osborne’s failure to kick-start growth.
Confidential Whitehall documents are reported to have found that the Chancellor’s ‘growth agenda’ is failing to meet key targets.
A senior Whitehall source told the Daily Telegraph: ‘The Treasury has been almost entirely focused on reducing the deficit not promoting economic growth. Jeremy Heywood read them the Riot Act.’
Mr Osborne is now reported to be drawing up a new package of measures to be unveiled in the autumn, with input from the Prime Minister’s advisers.
Mr Cameron – privately briefed on the figures by the Chancellor – said yesterday that continuing instability in the world economy was making it ‘difficult’ to achieve growth.
His message was echoed by Mr Osborne who told reporters that Britain was operating in a ‘very, very unstable environment’.
However, both men insisted that the Coalition would not retreat from its tough deficit reduction strategy – despite calls from Labour for the Government to bring forward a ‘plan B’. Mr Cameron appeared to rule out short-term tax cuts, despite hints from Mr Osborne at the weekend that Labour’s controversial 50p tax rate could be axed next year to make Britain more competitive.
Mr Cameron also dismissed calls from Business Secretary Vince Cable for the Bank of England to resume printing money to help the economy.He told a press conference there was ‘no money for tax cuts and spending increases’.
The Prime Minister added: ‘The right step for an economy like ours is to get on top of the debt and the deficit and make it a better place for businesses to grow and employ.’
Mr Osborne insisted his tough deficit reduction plan has been vindicated by events – with Britain spared the economic turmoil experienced by Greece and Portugal.
The ‘difficult decisions’ of the past year had been justified by the low interest rates and strong credit status that resulted, he added.
Related Post:
economic
- IMF said asian economic growth forecast 2013
- Economic Events Next Week April 30-May 4 2012
- Vietnam forex reserves forecast 2012
- Business events and economic reports january 2012
- Financial Market and Economic News january 2-6 2012
- U.S. Economic and Housing Market Outlook November 2011
- Saudi-Spanish Center for Islamic Economics and Finance (SCIEF)
- what Ben Bernanke steps to stimulate a flagging economic recovery
- U.S. Europe economic outlook weekly september 19 2011
- portugal economic crisis effects 2011
No comments:
Post a Comment