Boost for Tories: growth goes up, jobless number falls
New figures show economy grew by 2.6% in 2014 – Britain’s best performance since 2007
Chancellor George Osborne could still produce a “feel good factor” for the general election after official figures released this morning showed the UK economy grew last year by 2.6 per cent - the strongest annual rate of economic growth since before the banking crash.
Coming a day after figures showing the inflation rate was down to 0.3 per cent while wages rose by 2.1 per cent, the new figures released by the Office for National Statistics (ONS) will help Osborne and David Cameron refute Labour’s general election claim that families are suffering a cost-of-living squeeze.
The ONS said the improvement in economic outlook for businesses has fed through to an increase in employment of 103,000 jobs in the last quarter of 2014, taking the total in work to 30.9 million. Overall, 5.7 per cent are out of work, a fall of 486,000 year on year.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Labour leader Ed Miliband and shadow chancellor Ed Balls continue to argue that the employment figures conceal the true extent of the pain felt by many working families where the breadwinner is on a zero-hours contract or – particularly among women – has only a low-paid part-time job.
As for growth, the ONS figures show the UK economy grew by 0.5 per cent in the final quarter of 2014, outstripping growth in the eurozone and resulting in a growth rate of 2.6 per cent for 2014 as a whole - the strongest calendar year rate of growth since 2007.
Growth would have been even more impressive if there had not been a 1.8 per cent slowdown in the construction industry. That is certain to lead to more pressure on Osborne and Cameron to announce further measures to stimulate the housing industry, which could become Osborne’s pre-election priority in his final pre-election Budget on 18 March.
In the shorter term, Tory backbenchers anxious about holding onto their jobs will be keen to see whether these encouraging growth and employment stats feed through to the opinion polls: apart from Monday’s ICM poll which gave the Tories a six-point jump, most other polls have refused to be moved by economic indicators.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Will Aukus pact survive a second Trump presidency?
Today's Big Question US, UK and Australia seek to expand 'game-changer' defence partnership ahead of Republican's possible return to White House
By Sorcha Bradley, The Week UK Published
-
Can Cameron put the Falklands sovereignty dispute to bed?
Today's Big Question Foreign secretary says issue 'not up for discussion' ahead of visit amid renewed push from Argentina
By The Week UK Published
-
It's the economy, Sunak: has 'Rishession' halted Tory fightback?
Today's Big Question PM's pledge to deliver economic growth is 'in tatters' as stagnation and falling living standards threaten Tory election wipeout
By Harriet Marsden, The Week UK Published
-
Will America recognize a Palestinian state?
Today's Big Question Israeli leader Benjamin Netanyahu opposes the move. Some see it as the only route to peace.
By Joel Mathis, The Week US Published
-
Fasting to burger buffets: the weird and wonderful diets of politicians
Why Everyone's Talking About Rishi Sunak reportedly starts his week with a 36-hour fast
By Sorcha Bradley, The Week UK Published
-
Why your local council may be going bust
The Explainer Across England, local councils are suffering from grave financial problems
By The Week UK Published
-
Rishi Sunak and the right-wing press: heading for divorce?
Talking Point The Telegraph launches 'assault' on PM just as many Tory MPs are contemplating losing their seats
By Keumars Afifi-Sabet, The Week UK Published
-
How would a second Trump presidency affect Britain?
Today's Big Question Re-election of Republican frontrunner could threaten UK security, warns former head of secret service
By Harriet Marsden, The Week UK Published