Europe - Clegg Vs Farage

Europe - Clegg Vs Farage

Boost for British Economy

Chancellor George Osborne MP delivers budget speech.

With the general election in little more than a year away, the Chancellor George Osborne seeks to position himself with the Tories as tax cutting party for hardworking Britons.

The Chancellor received a further boost as Britain's economic prospects are set to get even better. Research carried out by the Centre for Economics and Business Research (Cebr) shows that consumer spending is set to rise by 1.5% which in turn will help growth reach its highest point since 2007.

The study comes just after figures show that unemployment fell below the 7% threshold which has been previously put in place by the Bank of England as the trigger for the raising of interest rates. We have also learned that after a six year period of high inflation, wages have finally crept up above the rate of inflation.

Though conscious of the good economic news, Mr Osborne is aware of the criticism from the Labour party that workers have yet to feel the benefits of the recovery, though many fear that the Cost of Living mantra may not be enough to persuade the electorate in the run up to the election, especially now we see inflation coming down.

The report also brings hope with regard to other measures which indicate that the recovery is becoming more balanced and makes the case that rate of growth in the British economy will pave the way for tax cuts worth up to £7 Billion.

Household consumption accounted for more than 80% of the growth which we saw last year and is furthermore set to half to around 46% as businesses feel more confident about 'splashing their cash.' With that said, business investment is set 10.1% in real terms this year.