This week the IMF unveiled a dramatic upgrade to its outlook for the UK and our economic growth. And whilst this may seem remote, or sometimes irrelevant, it really matters for our country and for us here in Burnley and Padiham.
Because getting our area thriving and cutting our unemployment rate locally – which remains too high – relies on us having strong local businesses.
In the latest assessment, the UK’s economic prospects have significantly improved. Previously, and to the misplaced delight of those on the left, it was anticipated that we would face the worst economic conditions amongst the G7. Many will have seen the social media graphics put out by Labour and the rest of the doom-and-gloom brigade. They see this, and the economic opportunities for normal people, as one big political game.
But as the Chancellor said at the time, the predictions ignored the underlying strength of the UK economy. Our stronger than expected performance since those forecasts has resulted in this major upgrade. Now, not only has the IMF said the UK will grow this year, as opposed to its previous expectation of a recession, but in the longer term our growth is forecast to be the highest in Europe’s G7 economies, and second only to the USA and Canada.
This hasn’t happened by accident. It’s due to the concerted efforts of the Prime Minister and the Chancellor to reduce inflation, drive economic growth, and reduce debt.
And so, whilst growth remains modest, given the world economic outlook, it’s an important step in the right direction. And for those saying it’s an upgrade for everyone, or it isn’t because of Government action, look only to Europe’s economic powerhouse – Germany – where growth is expected to be "near zero."
However welcome, it’s still essential to address the challenges that persist. For us that centres around employment opportunities and is why I’ve been so focused on linking our businesses with our vastly improving education facilities. And it’s why I met with Burnley College again this week to discuss their pivotal role in empowering young individuals, and adult learners, to both take up and create the jobs of the future. And I was also pleased to welcome the Chair of Burnley Bondholders to Parliament and Downing Street.
And finally, on Thursday the next bit of good news came with the Ofgem announcement that energy bills are going to drop dramatically – with the price cap down more than 50% on its previous peak.
Our economic plan is working, and it remains my focus.
