New figures released from the Office for National Statistics this week show the British economy grew more strongly last year than previously thought. This was part of a hat-trick of good news – with new figures also showing consumer confidence is at its highest level in over 12 years, and that living standards are now higher than in May 2010.
Growth in 2014 has been revised up to 2.8 per cent. In 2014 UK GDP grew by 2.8 per cent – revised up from 2.6 per cent. This is fastest annual rate of GDP growth in this country since 2006 – and the fastest in the G7 last year, ahead of Canada, the next highest, which grew at 2.5 per cent in 2014.
Meanwhile, consumer confidence is at highest level in over 12 years. The consumer confidence barometer, compiled by market research institute GfK, is now at +4, up from +1 in February, and at its highest level since March 2002. Consumer confidence has increased significantly over the last year, with the index now 9 points higher than a year ago.
In addition, living standards have risen 1.9 per cent over the last year. Real Household Disposable Income (RHDI) per person, in Q4 2014 increased by 1.9 per cent compared to a year earlier according to the ONS, Quarterly National Statistics, (31 March 2015).
Living standards are now 2.2 per cent higher than they were before Labour’s Great Recession. They are also higher than they were at the last election. In Q4 2014 RHDI per capita was £4,187, in Q2 2010 it was £4,178. These findings are backed up by the independent Office for Budget Responsibility, which forecast in the 2015 Budget, that living standards in 2015 would be higher than in 2010.
Greg Hands, the Conservative Parliamentary Candidate for Chelsea and Fulham said: “This week we’ve got a hat-trick of good news about the British economy and with less than 35 days to go the election it’s another sign that changing course would put recovery at risk.
“We’ve had a significant upgrade to GDP, the highest consumer confidence for over 12 years and confirmation that living standards are higher than they were at the last election. This is good news for families and businesses across the country.
“So voters now face a clear choice: do we stick with a plan which is working, delivering growth and jobs, or do we put all that at risk with Ed Miliband whose policies of more spending, more borrowing and higher taxes will lead to economic chaos.”