Increased Government Spending Fuelled UK Economic Growth
A jump in government spending helped fuel the UK's economic growth in the second quarter, the country's Office for National Statistics said.
Government spending grew 1% in the quarter, the fastest rate in over a year, Bloomberg News reported. This contributed to economic growth of 1.2% for the quarter.
The Conservative-led coalition government is preparing tax increases and budget cuts totaling 113 billion pounds ($179 billion) as it tries to tackle the country's largest deficit in decades.
"The more the contribution of government now, the more we're going to miss it when it's taken away," Peter Dixon, an economist at Commerzbank AG, told Bloomberg News "We're going to see much slower growth."