Commenting on the latest GDP figures, Professor Philip Booth, Editorial Director at the Institute of Economic Affairs, said:
“It is welcome news that the economy is growing steadily, but the economy is smaller than in 2008 and living standards are still falling as productivity stagnates. The recovery from the crash of 2008 compares very unfavourably with the recovery from the Great Depression and post-war recessions.
“Over the last ten years, we have had a huge growth in government spending and taxation, business regulation and, more recently, banking regulation. There is still no real sign of an increase in bank lending to businesses. These problems are holding back the UK economy. Government spending should be reduced more quickly to leave room for tax cuts. Planning, employment and energy market regulation should be scaled back radically.
“Initiatives such as Help to Buy may boost growth in the short term but are no substitute for a long-term pro-growth policy.”
Notes to editors:
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