Jeremy Hunt tells Daily Express UK economic system is surging again to ‘full strength’ | Politics | News | EUROtoday

Upbeat Jeremy Hunt right this moment tells Daily Express readers the economic system is surging and “you’ll notice the difference”. Emboldened by the quickest progress figures for 2 years, the Chancellor mentioned the UK will quickly be again to “full strength”.

Mr Hunt says Britain’s economic system is now rising quicker than the USA, France, Italy and Germany. “The British economy is gaining momentum and will soon return to full strength,” he says. “This is the result of sticking to the plan.

“It’s a plan for pensioners, working parents and families right across the country.”

Rishi Sunak declared “things are starting to feel better” as he hailed the nation’s outstanding financial bounceback.

The Prime Minister mentioned confidence is returning to the nation as official knowledge confirmed the economic system grew 0.6% for the primary three months of the yr.

It was the strongest fee of quarterly progress for Gross Domestic Product (GDP) because the finish of 2021, the Office for National Statistics (ONS) mentioned.

Importantly, Britons had been additionally getting higher off over the most recent interval, with GDP per head up 0.4 per cent.

The figures are a much-need tonic for the Prime Minister following bruising native election outcomes adopted by one other Tory defection to the Labour Party.

A surging economic system and falling inflation provides Mr Sunak a robust message to promote to voters that his plan actually is working and issues are on the up.

Speaking at a enterprise facility in Eynsham, Oxfordshire, the PM mentioned: “After undoubtedly a difficult couple of years that the country has had, actually now things are starting to feel better.

“Confidence is returning to the economy and the country, and I hope that you’re starting to feel that too.”

Mr Sunak was joined by the Chancellor and Conservative MP for Witney Robert Courts as he was proven across the Siemens Healthineers manufacturing facility, which manufactures magnets used inside MRI scanners.

The Prime Minister’s go to got here because the Treasury introduced greater than £2billion of funding has been secured within the UK by world main tech firms.

Siemens Healthineers introduced it was investing £250million to construct a brand new separate facility in Oxfordshire, which is able to help greater than 1,300 expert jobs as soon as totally operational.

Mr Sunak mentioned at a PM Connect occasion the corporate was the most recent to put money into the UK, and referenced Jaguar Land Rover, Microsoft and Google “expanding their footprint”.

He mentioned: “We have managed to make the case to the world that this is the best place to start a business, to grow a business (and) to invest in a business.”

Mr Hunt mentioned: “Businesses are making a safe bet in Britain. We have attracted the third highest amount of greenfield foreign direct investment since 2010 and the UK accounts for around half of all AI private capital investment in Europe.

“We really are turning a corner, and the businesses of the future agree.”

The faster-than-expected progress figures means the UK has rebounded out of a mini-recession.

The efficiency was significantly pushed by enhancements within the providers and manufacturing sectors, which grew by 0.7 % and 0.8 % respectively.

On Friday, the ONS confirmed the quarterly efficiency after 0.4 % financial progress in March, once more boosted by the UK’s service trade.

There was notable progress for the human well being and social providers sector, administrative and help providers, in addition to for wholesale and retail corporations.

Grant Fitzner, chief economist on the Office for National Statistics, used the phrase “gangbusters” to explain the efficiency, noting that just about each a part of the providers trade is rising whereas commerce additionally contributed to the rebound.

Ben Jones, lead economist on the CBI (Confederation of British Industry), mentioned the information suggests the UK is “now on the road to recovery”.

He added: “With falling inflation boosting households’ spending power, as well as opening the way for a reduction in interest rates in the months ahead, the economy should be able to sustain some momentum through the year.

“But a consumer-led recovery could prove short-lived without more determined action to tackle the long-standing problem of weak productivity growth, which ultimately sets the UK’s economic speed limit.”

Compared to different main economies, Britain is a star performer with our progress fee topping the G7 for the primary quarter.

The US, which is usually thought-about to be booming, grew by 0.4 % over the interval whereas France and Germany managed solely a mediocre 0.2 %.

Britain has moved from sixth place among the many G7 on the finish of 2023, to first place.

If this may be continued, analysts on the National Institute of Economic and Social Research consider it would translate to annual progress of two.5 %.

The IEA’s Julian Jessop mentioned the bounce in GDP will assist enhance shopper and enterprise confidence and immediate a wave of upward revisions to financial forecasts for 2024.

“Growth should continue over the rest of the year, albeit at a slower pace,” he said, adding that inflation will fall further.

Yael Selfin, chief economist at KPMG, said: “We count on to see continued progress for the remainder of this yr, supported by a extra beneficial financial backdrop.

“Falling inflation and real pay increases should help repay some of the damage to household incomes and support household’s consumption.”

The welcome knowledge got here a day after the Bank of England held rates of interest at 5.25 % and barely upgraded its forecast for UK financial progress.

Labour’s shadow chancellor Rachel Reeves mentioned: “This is no time for Conservative ministers to be doing a victory lap and telling the British people that they have never had it so good.

“The economy is still £300 smaller per person than when Rishi Sunak became Prime Minister.”