Heatwave and World Cup combine to lift Britain’s economy despite Brexit doom-mongering
A stretch of scorching weather and the excitement of the World Cup has seen spending increase and Britain's economy boosted despite Brexit doom-mongering
THERESA May got a Brexit boost yesterday as the early summer heatwave and World Cup saw economic growth double.
Higher household spending helped overcome a worrying fall in exports and a manufacturing recession.
And business investment rose despite fears of a crash in confidence due to the Brussels deadlock.
The ONS said growth hit 0.4 per cent in the three months to June – against 0.2 per cent in the previous three months.
Laith Khalaf, senior analyst at Hargreaves Lansdown, said: “The World Cup, the Royal Wedding and warm weather got consumers spending on beers and barbecues.
“But higher energy bills and petrol prices, and a backdrop of weak wage growth, suggests the shackles are still on the UK economy.” Others warned growth was “anaemic”.
The trade deficit widened from £4.7billion to £8.6billion in the three months to May on a notable fall in exports to non-EU nations.
Chancellor Philip Hammond insisted the Government wasn’t complacent.
He announced a £1billion business innovation fund to generate more high-tech jobs on a visit to Coventry.
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Shadow chancellor John McDonnell said the country was paying the price for Tory austerity.
He stormed: “Councils are going bankrupt and the NHS is in permanent crisis while holidaymakers are being hit by the Pound. Labour will bring stability.”
Phil: EU deal is fair
THE Chancellor slapped down Eurosceptics as he insisted the PM’s controversial Chequers Brexit plan was “fair and sensible”.
A day after ex-Cabinet Minister Priti Patel warned its concessions to the EU would cost Tory seats, Philip Hammond branded it a “pragmatic” way out of the deadlock with Brussels.
But senior Tory backbencher Andrew Bridgen said: “Chequers is not Brexit and not what we promised the British people.”
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