As a direct result of the Government’s work over the past months, the UK’s economic outlook has improved substantially, with inflation down and expected economic growth for this year up.
In the past few years, we have faced a number of shocks to our economy with the shutdown over the pandemic, global inflationary pressures, and an energy crisis driven by Putin’s barbaric war in Ukraine. These have been monumental challenges for governments around the world, which is why I am pleased that this Government has risen to the task and taken the necessary, substantive action to help the UK economy recover.
At the beginning of the year, the Prime Minister outlined the 5 People’s Priorities for 2023:
- Halve Inflation
- Grow the Economy
- Reduce Debt
- Cut Waiting Lists
- Stop the Boats
Recent announcements have shown that this Government is undoubtedly delivering on the first two of these priorities.
On inflation, the headline rate of CPI fell to 8.7% in the year leading to April 2023, down from 10.1% in March. This is the result of the Government’s pragmatic, responsible attitude to public finances, working with the Bank of England to bring down the rate of inflation, whilst also providing generous support to households with the cost of living by holding down bills through the Energy Price Guarantee and freezing fuel duty. This is alongside over £3,000 direct cost of living support this year and last.
On economic growth, the IMF has recently upgraded its forecasts for the UK’s economic performance in 2023, now predicting that the UK will avoid recession and have positive growth of 0.3%. This is higher than that of Germany, and far stronger than the 0.7% contraction previously forecast.
As the Chancellor, Jeremy Hunt, has rightly said, this “IMF report shows a big upgrade to the UK's growth forecast and credits our action to restore stability and tame inflation.
It praises our childcare reforms, the Windsor Framework and business investment incentives.
If we stick to the plan, the IMF confirm our long-term growth prospects are stronger than in Germany, France and Italy... but the job is not done yet."
The Chancellor is absolutely right that we must not be complacent, as there is more important work to be done to get our economy recovered and moving again. However, these announcements demonstrate clearly that this Government has the right plan of action for the UK’s future economic prospects.
Whilst Keir Starmer and Labour propose nonsensical and uncosted economic policies that change at a minute’s notice, the Conservatives will continue to deliver in the interests of the British people.