UK 2016 economic growth forecast raised to 2.4%: Osborne

[LONDON] Chancellor of the Exchequer George Osborne said the UK economy will grow by 2.4 per cent this year and in 2016 as he set out his spending priorities for the next five years.

The forecasts, by the Office for Budget Responsibility, compare to July growth predictions of 2.4 per cent this year and 2.3 per cent in 2016. Osborne said they reflect the wisdom of his policy to cut government spending since coming to office in 2010.

"Since 2010, no economy in the G-7 has grown faster than Britain," Osborne told lawmakers in the House of Commons on Wednesday. "That growth has not been fuelled by an irresponsible banking boom, like in the last decade," he said, "we're determined that this will be an economic recovery for all, felt in all parts of our nation."

Osborne has imposed budget cuts in the face of opposition warnings it would slow Britain's economic growth. Since May's election victory for his Conservative Party he has been unfettered by being in coalition with the Liberal Democrats and pledged to press ahead with his program to slash welfare and government departments.

"When I presented my first Spending Review in 2010 and set this country on the path of living within its means, our opponents claimed that growth would be choked off, a million jobs would be lost and that inequality would rise," Osborne said. "Every single one of those predictions have proved to be completely wrong."

BLOOMBERG