A strong recovery in spending in pubs, restaurants and on the high street helped return the British economy to growth in April.
GDP was up 0.2 per cent in the month, in line with City forecasts, following a 0.3 per cent slump in March, according to figures today from the Office for National Statistics.
However, GDP only grew a meagre 0.1 per cent overall in the three months to April, the ONS said.
Chancellor Jeremy Hunt said: “We are growing the economy, with the IMF saying that from 2025 we will grow faster than Germany, France and Italy.
“But high growth needs low inflation, so we must stick relentlessly to our plan to halve the rate this year to protect family budgets.”
But Labour’s shadow chancellor Rachel Reeves said: “Despite our country’s huge potential and promise, today is another day in the dismal low-growth record book of this Conservative government.
“The facts remain that families are feeling worse off, facing a soaring Tory mortgage penalty and we’re lagging behind on the global stage.”
Emma McClarkin, chief executive of the British Beer and Pub Association said: “It is positive to see the UK economy start to return to growth, with pubs across the country playing a leading role in that. These figures demonstrate that even when times are tough, people want to enjoy a visit to their local pub.
“Despite this, and ongoing support from the public, profits are being stripped away by high inflation and pubs trying to keep costs low for customers.”
