UK economy can be world’s most prosperous by 2030, says Osborne

Chancellor George Osborne says that UK economy could be the richest economy in the world.

As the UK recovery continues to grow in strength, optimism is reaching highs and businesses can look forward to a year of strong performances, especially in the small and medium-sized enterprise (SME) sector. The UK government also recognises the burgeoning recovery and believes the UK economy has the potential to become the richest in the world in 15 years’ time, according to the UK’s chancellor, George Osborne.

Speaking at the Royal Economic Society, Mr Osborne said: “The case for optimism is strengthening. If we are willing to take on the vested interests and pursue the right policies with consistency and discipline then there are no limits to what Britain can achieve.”

UK could be most prosperous major economy by 2030s

It’s a claim that’s aimed at making the most of the recovery ahead of the next general election, however, Britain’s recovery has been way more impressive than the likes of its neighbours, namely the European Union as a whole.

This makes Osborne’s statement that “there is no reason why Britain cannot be the richest major economy in the world” a lot more plausible than most would give him credit for.

While the annual inflation rate for the UK fell to 0.5 per cent, increasing concerns of deflation, the underlying economy remains strong and UK businesses and residents will likely benefit from wage growth expanding while price growth remains muted. In fact, since the drop in inflation was mostly driven by a crash in the price of oil, the UK will effectively enjoy a massive tax cut.

“We can become the most prosperous of any major economy by the 2030s, with that prosperity widely shared – an aim I believe is firmly within our grasp,” said Mr Osborne.

To help the economy on its way, Osborne laid out several reforms that would be enacted after the election, the most significant would force future governments to operate a budget surplus each year in normal times.