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George Osborne expects more money in people's pockets

The Chancellor has welcomed the rise in GDP in the UK, saying it will lead to better prospects for those in work as the economy continues to grow.

Speaking to ITV News, George Osborne said that the 0.7% growth in the economy was a result of the past five years' policies of reining in public expenditure and promoting business.

Labour accuses Chancellor of 'complacency' over UK growth

Labour's Shadow Chancellor has accused George Osborne of being 'complacent' over the latest GDP figures and said Britain needed a "more balanced recovery".

Chris Leslie said the Chancellor needed to do more to support exporters in the face of "mounting instability from Europe, China and the world economy".

Today’s figures show we need a more balanced recovery, with construction output weak for the past nine months. The OBR has revised down productivity next year and for three years after that. Manufacturing is down by 0.3 per cent and the Government is on course to miss its exports target by hundreds of billions of pounds. The Chancellor is complacent at a time when he should take action to support exporters and strengthen Britain’s infrastructure. Pulling the plug on major rail electrification and hitting households next April with a work penalty in the tax credit system are the wrong choices for the long term.

– Chris Leslie

Osborne: GDP figures show Britain is 'motoring ahead'

George Osborne has welcomed the latest GDP figures, saying that Britain needs to keep to the "road we've set out on".

Responding to the latest figures from the Office for National Statistics which showed the country's GDP rose by 0.7% in the second quarter of 2015, the Chancellor tweeted:

"GDP growth 0.7%. Shows Britain motoring ahead with economy producing as much per head as ever before. We must stay on road we've set out on."


Services sector drives rise in GDP after poor start to 2015

A return to form for the dominant services sector, which has led the economy out of recession, helped the UK improve on a disappointing start to the year when GDP increased by just 0.4%.

Service industries have driven the rise in UK growth Credit: PA Wire

Today's initial estimate by the ONS showed that the services sector, representing more than three-quarters of economic output, contributed 0.5% out of the 0.7% growth figure.

Tax breaks for the beleaguered North Sea oil and gas industry helped the production sector to its strongest performance for four and a half years while the mining and quarrying sub-sector within which oil and gas output is classified saw its best quarter for nearly 26 years.

However, Britain's factories - which have been hit by the strength of the pound weighing on exports - struggled. Manufacturing shrank by 0.3%, the worst performance since the start of 2013.

The construction industry was also flat, continuing its sluggish run since the end of last year.

UK growth levels reach pre-credit crunch levels

Manufacturing output has fallen while mining has increased Credit: PA Wire

The latest GDP figures have confirmed that economic growth in the UK is back on track and raised speculation about an early rise in interest rates.

UK growth bounced back in the second quarter of the year with gross domestic product (GDP) up by 0.7%, according to official figures for the Office for National Statistics.

It means GDP per head - a measure which takes into account that the nation's wealth is shared by an expanding population - has now caught up with pre-crisis levels at the start of 2008.

ONS chief economist Joe Grice said: "After a slowdown in the first quarter of 2015, overall GDP growth has returned to that typical of the previous two years.

"But the pattern has differed across the economy. Overall growth has been driven by the service sector and the strongest growth in mining and quarrying since 1989.

"However, manufacturing output has fallen slightly and construction has been flat."

UK economy grew by 0.7% in second quarter of 2015

Credit: PA

The UK economy grew by 0.7% during the second quarter of 2015, the Office for National Statistics said today.

The figures show that economic growth has continued in 2015, up from 0.4% in the first quarter of the year.

The Office for National Statistics said the growth had been driven primarily by services (0.7%) and mining & quarrying (7.8%), their strongest performance since 1989.

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