09/09/2013 11:35:00

UK's Osborne Claims Victory in Austerity Debate

LONDON--Treasury Chief George Osborne said Monday the U.K.'s economy is "turning the corner," vindicating the government's commitment to pushing ahead with austerity measures.

In his first speech on the economy since signs emerged of a significant pickup in growth from the three months to June, Mr. Osborne will say that to change course now and abandon his program of spending cuts would be disastrous.

The austerity program--which has seen spending cuts and tax rises implemented to try to close the country's huge budget gap--has been the government's cornerstone policy since it came into office in 2010.

But the program has been severely criticized by opposition lawmakers, trade unions, and some business groups and economists, who argued that overly aggressive spending cuts had suffocated growth. Opponents of austerity pushed for a so-called "Plan B" that would take a more moderate approach to correcting the public finances.

After barely growing since 2010, the U.K. economy has this year begun to show tentative signs of life and in recent weeks a run of strong economic data and surveys have indicated a recovery is finally underway.

During his speech at a construction site in east London, Mr. Osborne said that this positive data flow "decisively" ends the debate in favor of his belief that austerity measures coupled with loose monetary policy are the correct remedy for the British economy.

"The evidence increasingly suggests that our macroeconomic plan was the right one and is working," Mr. Osborne said. "Those in favour of a Plan B have lost the argument."

Mr. Osborne also cautioned that the recovery is still in its early stages, and many risks remain, namely the slowdown in emerging markets; the possibility of further turbulence in the euro zone; and the risk that instability in the Middle East will push up oil prices.

"We remain vigilant on all fronts, and our economic plan gives us the resilience and stability we would need if any of these risks were to materialize," Mr. Osborne said. "More tough choices will be required after the next election to find many billions of further savings and anyone who thinks those decisions can be ducked is not fit for government."

The Treasury chief also refuted claims the U.K. is returning to debt-fueled, consumption-led growth, saying the economic data point to a balanced, broad-based and sustainable recovery.

Mr. Osborne said the Bank of England's Financial Policy Committee, the financial and stability watchdog, now has the tools to act if it spots areas of the economy where imbalances are emerging.

Chris Leslie, treasury spokesman for the opposition Labour Party, said Mr. Osborne's speech was a "desperate attempt to rewrite history."

"With prices still rising faster than wages, working people are on average 1,500 pounds [$2,343] a year worse off than in 2010. The last thing they want to hear is complacent and out-of-touch boasts that the last three years have been a success," Mr. Leslie said.

Write to Ainsley Thomson at ainsley.thomson@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

September 09, 2013 06:35 ET (10:35 GMT)

Copyright (c) 2013 Dow Jones & Company, Inc.

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
15 Sep
 
  Jeg forstår ikke, at EI tillader en skribent som Baronen84, at forpeste hele forummet med løgn, hå..
46
15 Sep
BAVA
FUCK, hvor er disse to usympatiske individer belastende. Ved godt jeg ikke burde starte denne tråd, ..
40
18 Sep
FING-B
Goodwrench, sikke en omgang vrøvl.   Det er ikke kun hyklerisk, men også dybt patetisk, når du komme..
35
15 Sep
BAVA
Har vel tabt omkring 225K men det er ikke det værste. Det værste er at der så stadig ikke er en orde..
29
16 Sep
BAVA
Personligt vil jeg jo sige, at nu er der det gode til BN tilbage, så hvis man fik en over snuden så ..
26
19 Sep
PNDORA
Her er min model ;)      
23
16 Sep
BAVA
Først - surt show - been there, done that - så kender følelsen! Har set mange som har skrevet - at ..
22
21 Sep
BAVA
Nogle gange...bare nogle gange ville jeg godt nok vaere glad og taknemmelig hvis vi ikke evig og alt..
20
17 Sep
 
er højt i kurs her  .   Det er synd, at voksne mennesker ikke har mere pli, så snart de er anonyme .
18
21 Sep
I:SP500
Hej   Der er lige nu kommet nye tal fra Conference Board omkring de ledende indikatorer. Vores konju..
17

P. Schoenfeld Asset Management LLP : Form 8.3 - Booker Group plc

21/09/2017 15:00:13
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover Code (the "Code") 1.         KEY INFORMATION (a) Full name of discloser: P. Schoenfeld Asset Management LLP (b) Owner or..

Travis Perkins PLC : Director/PDMR Shareholding

21/09/2017 13:07:29
Travis Perkins PLC (the 'Company') Notifications of transactions by Persons Discharging Managerial Responsibilities ('PDMRs') The Company was notified today, 21 September 2017, that on 20 September 2017 the PDMRs listed below were granted options over ordinary shares of 10 pence each in the Company under the Company's Sharesave scheme at an option price of £11.85. ..

Dimensional Fund Advisors Ltd. : Form 8.3 - John Wood Group Plc - Ordinary shares

21/09/2017 10:20:38
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover Code (the "Code") 1.         KEY INFORMATION (a) Full name of discloser:   Dimensional Fund Advisors Ltd. ("Dimensional"), in its capacity ..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
CSCMP Panel to Showcase the AI-Driven Supply Chain
2
BlueJeans Positioned in the “Visionaries” Quadrant of the Gartner Magic Quadrant for Meeting Solutions
3
NANTKWEST INVESTOR INVESTIGATION ALERT – Andrews & Springer LLC Is Investigating NantKwest, Inc. For Potential Breaches of Fiduciary Duty
4
AVRA Medical Robotics, Inc. Updates Shareholders and the Investment Community With Respect to Recent Events Raising AVRA’s Visibility in the Medical Robotics Field
5
Smithfield Foods’ Helping Hungry Homes® and Food Lion Donate Nearly 40,000 Pounds of Protein to the Foodbank of Central & Eastern North Carolina

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2017   Disclaimer and Terms of Use
Quote information is delivered by Morningstar.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
22 September 2017 08:55:51
(UTC+00:00) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20170921.1 - EUROWEB3 - 2017-09-22 09:55:51 - 2017-09-22 08:55:51 - 1000 - Website: OKAY