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UK economy is slowly healing, Downing Street insists amid triple-dip fears UK economy is slowly healing, Downing Street insists amid triple-dip fears
(5 months later)
Downing Street has said the economy is "slowly healing" before the publication of the latest growth figures which could show that Britain has entered a triple-dip recession.Downing Street has said the economy is "slowly healing" before the publication of the latest growth figures which could show that Britain has entered a triple-dip recession.
The prime minister's spokesman, who was forced to defend the cabinet secretary, Sir Jeremy Heywood, after he reportedly spoke of ministerial divisions over the government's growth strategy, said progress was being made on a series of fronts.The prime minister's spokesman, who was forced to defend the cabinet secretary, Sir Jeremy Heywood, after he reportedly spoke of ministerial divisions over the government's growth strategy, said progress was being made on a series of fronts.
Whitehall is bracing itself for the publication on Thursday of growth figures for the first quarter of 2013. Britain's gross domestic product (GDP) shrank by 0.3% in the final quarter of last year. If GDP contracts again – a second consecutive quarter of negative growth – Britain would enter another recession, its third since 2008.Whitehall is bracing itself for the publication on Thursday of growth figures for the first quarter of 2013. Britain's gross domestic product (GDP) shrank by 0.3% in the final quarter of last year. If GDP contracts again – a second consecutive quarter of negative growth – Britain would enter another recession, its third since 2008.
The prime minister's spokesman made clear that George Osborne and David Cameron would try to strike an upbeat note when the growth figures are published by the Office for National Statistics. He said: "This government isn't in the forecasting business. Forecasts are made by the independent Office for Budget Responsibility and the data is put out by the ONS. [But] as the chancellor was saying last week and the prime minister in his speech several weeks ago, what you are seeing is the economy is slowly healing. Deficit down by a third, 1.2m private sector jobs, the hard-won fiscal credibility that this government has translated into low interest rates for mortgage owners. Does the economic situation remain tough? Absolutely, yes. But the government believes the economy is healing."The prime minister's spokesman made clear that George Osborne and David Cameron would try to strike an upbeat note when the growth figures are published by the Office for National Statistics. He said: "This government isn't in the forecasting business. Forecasts are made by the independent Office for Budget Responsibility and the data is put out by the ONS. [But] as the chancellor was saying last week and the prime minister in his speech several weeks ago, what you are seeing is the economy is slowly healing. Deficit down by a third, 1.2m private sector jobs, the hard-won fiscal credibility that this government has translated into low interest rates for mortgage owners. Does the economic situation remain tough? Absolutely, yes. But the government believes the economy is healing."
The spokesman also defended Heywood after the Times reported that the UK's most senior civil servant had told a group of bankers in a private meeting that top cabinet ministers were adopting different approaches to the economy. Cameron wants to prioritise exports, free trade and micro- and small businesses, according to the Times report of Heywood's remarks. On the other hand, Nick Clegg wants to focus on regional growth, Vince Cable believes the lack of finance is holding back growth, and Osborne wants to focus on infrastructure and attracting overseas investment to Britain.The spokesman also defended Heywood after the Times reported that the UK's most senior civil servant had told a group of bankers in a private meeting that top cabinet ministers were adopting different approaches to the economy. Cameron wants to prioritise exports, free trade and micro- and small businesses, according to the Times report of Heywood's remarks. On the other hand, Nick Clegg wants to focus on regional growth, Vince Cable believes the lack of finance is holding back growth, and Osborne wants to focus on infrastructure and attracting overseas investment to Britain.
The prime minister's spokesman said: "The position is really clear. There is a single, central economic approach which is around dealing with the deficit and debts while reforming the economy so Britain can compete in the global race.The prime minister's spokesman said: "The position is really clear. There is a single, central economic approach which is around dealing with the deficit and debts while reforming the economy so Britain can compete in the global race.
"Within that you would expect the government to be doing a whole range of things. Should we be seeking to increase trade with the likes of China and India? Yes. Are we looking at all the ways we increase the SME [small and medium enterprise] financing availability? Yes. Do we set out long-term investments in infrastructure? Yes. Do we support the rebalancing of the UK economy, including regionally? Yes."Within that you would expect the government to be doing a whole range of things. Should we be seeking to increase trade with the likes of China and India? Yes. Are we looking at all the ways we increase the SME [small and medium enterprise] financing availability? Yes. Do we set out long-term investments in infrastructure? Yes. Do we support the rebalancing of the UK economy, including regionally? Yes.
"We do all of those things as part of the government's economic approach. The only surprise would be if we weren't doing all of those things.""We do all of those things as part of the government's economic approach. The only surprise would be if we weren't doing all of those things."
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