Election 2015, Day 2: Economy at centre stage

THE pre-election battleground moved to the economy today as new figures revealed economic growth last year was better than expected.

The UK economy grew by 0.6% in the final three months of 2014, up from the previous estimate of 0.5%, the Office for National Statistics (ONS) said.

That meant growth for the year was 2.8%, higher than the earlier estimate of 2.6%.  The new rate means the economy has grown at its fastest pace since 2006 when it grew by 3.6%.

The better figures were driven by production and services as well as household spending. But the biggest contribution to the growth figure was a strong performance of exports, the ONS said.

The release of the figures gave the Conservatives and Lib-Dems the opportunity to highlight their stewardship of the public purse, particularly as figures which also showed rising household incomes.

Income per head was up 1.9% at the end of 2014 against a year earlier and 0.2% higher than when the coalition Government took office in 2010.

Chancellor George Osborne said it was part of a “hat-trick of good economic news allied to stronger GDP growth”.

And Lib Dem Danny Alexander said it was a vindication of the party’s influence on its Conservative coalition partners.

“Handing back control of our economy to either Labour or the Tories in government on their own in this election will put all this hard earned progress at risk,” he said.

But Labour claimed working families were struggling as incomes were squeezed.

Speaking at a campaign event in Swindon, shadow chancellor Ed Balls, said the Conservatives were “telling people you have never had it so good” despite it being the “slowest recovery for 100 years”.

“This is a government which has presided over five years when wages have not kept pace with rising prices and family bills,” he said.

Menawhile, Institute of Directors director general Simon Walker has said business leaders should not be worried about prospects under a minority government, of any hue, after May.

And as the country prepares for a General Election so tight that it is impossible to call, Walker revealed he can see “some attraction” in that situation.

With the two main parties locked together at 34% in the polls, and the impact of the smaller parties this time round unquantifiable, the business world is looking ahead with uncertainty.

That is understandable, Walker told IoD West Midlands members at a meeting at Barclays’ base in Birmingham – but he believes there is no need for alarm.

“Businesses look for reasons not to invest,” he said. “And I can see there is a real worry that we will end up with an anti-business agenda. It is the simple uncertainty.

“But if there is quite a weak government, of whatever party, which could not take many initiatives and would be in no position to increase taxes, I could see the attraction in that.

“I don’t think much would change. People would continue to buy things.

“I was in the USA recently and somebody told me ‘the nation is never safe while Congress is in session.’ Often, moves just get in the way.

“None of us knows how it is going to be after the election. The big question is are we going to have a government which celebrates business or just tolerates it?”

And that question is not one of simply whether that government is led by Conservatives or Labour, believes the director general, he said.

“It is not simply down to which party is in power,” Walker said.

“Peter Mandelson was probably the best business secretary the country has had. Labour are certainly capable of being good for business.”