Western Daily Press (Saturday)
PM: Confidence in economy growing
RISHI Sunak has insisted that “things are starting to feel better” and that confidence in the economy is growing after the UK economy moved out of recession, although he conceded it would “take time” for people to really feel the benefits.
The Prime Minister reiterated his view that the Government’s economic plan was working as he visited a business facility in Eynsham, Oxfordshire.
It comes after the Office for National Statistics (ONS) said gross domestic product (GDP) is estimated to have risen by 0.6% over the first quarter of 2024, following two quarters of decline last year.
Mr Sunak was joined by Chancellor Jeremy Hunt and Conservative MP for Witney Robert Courts as he was shown around the Siemens Healthineers factory, which makes magnets for MRI scanners.
Speaking to Siemens staff at the facility, Mr Sunak said: “After undoubtedly a difficult couple of years that the country has had, actually now things are starting to feel better. Confidence is returning to the economy and the country, and I hope that you’re starting to feel that too.”
But the Prime Minister told the BBC that it would “take time” for people to “really feel better” and that there was “more work to do”. A consensus of economists had predicted a smaller 0.4% improvement for first quarter of 2024. It represented the strongest quarterly growth since the fourth quarter of 2021.
The Prime Minister’s visit came as the Treasury announced more than £2 billion of investment has been secured in the UK by world leading tech companies.
Siemens Healthineers announced it was investing £250 million to build a new separate facility in Oxfordshire, which will support more than 1,300 skilled jobs once fully operational.
Mr Sunak said the firm was the latest to invest in the UK, and referenced Jaguar Land Rover, Microsoft and Google “expanding their footprint”. He said: “We have managed to make the case to the world that this is the best place to start a business, to grow a business (and) to invest in a business.”
Mr Hunt said: “Businesses are
making a safe bet in Britain. We have attracted the third highest amount of greenfield foreign direct investment since 2010 and the UK accounts for around half of all AI private capital investment in Europe. We really are turning a corner, and the businesses of the future agree.”
Labour and the Liberal Democrats said there was little cause for celebration.
Lib Dem Treasury spokesperson Sarah Olney said: “This Conservative Government crashed the economy and sent mortgages spiralling. If Rishi Sunak thinks hardhit households will be celebrating today, he is even more out of touch than we thought.”