Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Interest rate pressure eases
Cookies on Businesscar

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time

BusinessCar magazine website email Awards mobile

The start point for the best source of fleet information

Interest rate pressure eases

Date: 06 December 2006   |   Author: Rupert Saunders

The UK economy is strong and growing faster than predicted, said Chancellor Gordon Brown in his Pre-Budget Report. He revised his 2006 GDP growth prediction up to 2.75% from the 2% to 2.5% anticipated in this year's Budget.

The acceptance of a faster economic growth rate will reduce the pressure on the Bank of England Monetary Policy Committee to raise interest rates.

However, UK inflation in October remained at 2.4% - well ahead of the 2.0% target that the Bank is supposed to maintain. Increases in university fees were offset by falling fuel prices.

Other economic highlights of the Chancellor's speech included:

  • Budget deficit reducing and in surplus by 2011 (deficit and debt lower than our competitors; no further borrowing necessary to pay for extra spending)
  • Greater sale of Government assets, such as land and buildings, to be examined
  • Greater enforcement of minimum wage (50% increase in enforcement budget)
  • Greater investment in education (90% of adults with 5 or more GCSEs by 2020; 4m adults with A-level or equivalent by 2020)
  • Sir Digby Jones to advise government on greater employer investment in employee training
  • Investment in transport will reach £9.6bn next year (Government to consult of new planning authority for infrastructure projects)