Recovery not yet complete, Osborne cautions

20 Feb 14
Chancellor George Osborne has warned that the UK’s economic recovery is not yet secure and pledged that his March 19 Budget will provide a boost to both investment and exports

By Richard Johnstone | 20 February 2014

Chancellor George Osborne has warned that the UK’s economic recovery is not yet secure and pledged that his March 19 Budget will provide a boost to both investment and exports.

Speaking in Hong Kong today, he said the coalition’s deficit reduction plan had helped the economy grow quicker than any other major European economy. 

However, he warned that it would be a ‘huge mistake’ to think the recovery was complete and there was no need for further cuts in public spending. 

‘Abandon the plan and we abandon the progress we’ve made and go back to square one,’ he told the British Chambers of Commerce in Hong Kong.

‘I’ve never been afraid to level with people about the hard truths. I said that we have to go on dealing with our debt and our deficit – and we have no choice but to do so.

‘I said recovery was not enough, we needed to avoid the mistakes of the past. So I’m now the first to say that the recovery is not yet secure and our economy is still too unbalanced.’

In particular, he said the country must not rely on either consumer spending or financial services for economic growth, as it had done in the past.

However, at present he said that Britain was not investing or exporting enough.

‘There are encouraging signs. Both business investment and exports are forecast to grow,’ said Osborne.

‘But we can’t be passive observers of the forecasts. We need to roll up our sleeves, get to work and make it happen.’

The Budget would further confront the UK economy’s problems and deal with hard truths, he said.

‘I want to deliver a Budget that supports a Britain that invests and that exports. A Budget that lays the foundations for our long-term economic security. And a Budget which ensures that around the world, wherever you are, you can’t help but see “Made in Britain”.’

Osborne was speaking in Hong Kong on his way to this weekend’s G20 meeting of finance ministers and central bank governors in Sydney. 

In his speech, he called on countries to ensure that the meetings do not descend into a ‘blame game’ over the impact of UK and US monetary policy on emerging markets. 

There has been criticism that the reduction of quantitative easing policies by the US Federal Reserve was hitting emerging economies.

Spacer

CIPFA logo

PF Jobsite logo

Did you enjoy this article?

AddToAny

Top