Osborne to make Commons statement on UK economy
Published: 11th Aug 2011 03:34:46
Chancellor George Osborne is to address MPs following the recent economic turbulence and the Bank of England's downgrade of its UK growth forecast.
The Bank has cut its 2011 growth forecast from 1.8% to about 1.5%, predicting that inflation was on course to hit 5% this year.
A Treasury spokesman said the British economy was "continuing to grow" and "creating jobs".
But Labour argued that the UK recovery had been "choked off" by spending cuts.
Mr Osborne wrote in an article for the Daily Telegraph on Monday that the government had a plan for growth which included lower corporation tax rates, less regulation for small firms, welfare reform, planning changes and lower taxes for entrepreneurs.
But he added: "We will take further action this autumn. Indeed this crisis provides an opportunity to make some difficult trade-offs in favour of growth that might get parked in the 'too difficult' box in calmer times."
Shadow Treasury minister Chris Leslie seized on the Bank of England's quarterly inflation report, which he said demonstrates that the government is guilty of "complacency".
Mr Leslie noted: "The Bank of England has now downgraded its growth forecast for this year five times since George Osborne became chancellor.
"Far from being a safe haven, as our chancellor complacently claims, last year's recovery in Britain has already been choked off by tax rises and spending cuts which go too far and too fast.
"Our economy has barely grown for nine months, well before the problems of recent weeks, and borrowing is now set to be £46bn higher than planned."
But the Treasury spokesman defended the government.
"As the Bank's report states, global conditions have had an impact on growth around the world," he said.
"But whilst no country is immune from the current global uncertainty, the British economy is continuing to grow and is creating jobs."
He concluded: "The decisive action taken by the government is helping to keep down the costs of borrowing for British businesses and provide the conditions needed for sustainable growth."
At 19:55:52 in SportBotswana's Nijel Amos produced a stunning run down the final straight to beat Kenyan David Rudisha to 800m Commonwealth gold.
At 19:51:37 in EnglandA former PC who was inside the police control box at Hillsborough has denied witnessing the start of a "cover-up".
At 19:49:45 in WalesFive people arrested by North Wales Police in connection with a fraud investigation work for a Gwynedd bus company, BBC Wales understands.
At 19:45:31 in Northern IrelandAn investigation has been launched into a "serious data breach" after medical files were found by children at a former health centre owned by SDLP leader Alasdair McDonnell.
At 19:45:07 in SportJersey's Zane Duquemin has finished eighth in the discus at the Commonwealth Games in Glasgow.
At 19:36:49 in EnglandRinging 999 for a lift after missing a bus or train has been one of the most common "inappropriate" calls received by police in Norfolk.
At 19:33:40 in SportA Thai consortium is to invest in Reading after chairman Sir John Madejski confirmed the deal.
At 19:32:06 in SportFormula 1 is heading into its summer break, so it is a good time to reflect on the season so far.
At 19:29:04 in SportEngland swimmer Siobhan-Marie O'Connor has described her time at the Commonwealth Games as "crazy" after winning six medals in Glasgow.
At 19:19:08 in SportNorthern Ireland 800m runner Katie Kirk improved her personal best for the second time in two days as she finished sixth in her semi-final in Glasgow.
Harvard CitationBBC News, 2011. Osborne to make Commons statement on UK economy [Online] (Updated 11th Aug 2011)
Available at: http://www.ukwirednews.com/news/176915/Osborne-to-make-Commons-statement-on-UK-economy [Accessed 31st Jul 2014]
News In Other Categories
Five people arrested by North Wales Police in connection with a fraud investigation work for a Gwynedd bus company, BBC Wales understands.
Plans have been unveiled for five more local TV stations in Scotland.
With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
Shares in sportswear maker, Adidas, have tumbled after the company issued a profit warning and said it will open fewer stores in Russia than planned.
An investigation has been launched into a "serious data breach" after medical files were found by children at a former health centre owned by SDLP leader Alasdair McDonnell.
The number of listings offering illegal drugs for sale on the "dark net" appears to have more than doubled in less than a year, BBC News has learned.