Government plans to measure national mood, alongside GDP

A rainbow stretches over Battersea Power Station in London August 4, 2010.

LONDON (Reuters) - Prime Minister David Cameron set out plans on Thursday to measure the national mood and help to build a more family-friendly Britain, a potentially fraught endeavour at a time of sharp spending cuts.

Cameron said the Office for National Statistics, which produces data on economic growth, unemployment and crime, would start measuring the quality of life from next April, arguing that current indicators do not show overall well-being.

There were no details on how the ONS would measure people's well-being, however. Economists have previously expressed scepticism over whether such a gauge would be taken seriously.

The new gauge will be launched as public spending cuts of 81 billion pounds over the coming four years start to bite. The Conservative-Liberal Democrat government is making the cuts to tackle a record budget deficit.

Cameron said that he remained focused on maintaining Britain's recovery from deep recession.

"I am clear that our most urgent priority is to get the economy moving, create jobs and spread opportunity to everyone," Cameron said in excerpts of a speech he will deliver on Thursday.

The economy grew by 0.8 percent in the third quarter but economists fear that growth will slow next year.

However, Cameron said the government had to focus on quality of life as well as economic expansion.

"The contention is that just as we can create the climate for business to thrive -- by cutting taxes, slashing red tape and so on -- so we can create a climate in this country that is more family-friendly and more conducive to the good life," he said.

Britain is following a trail blazed by France.

In February last year, President Nicolas Sarkozy asked Nobel laureate Joseph Stiglitz, a former White House adviser and World Bank chief economist, and a group of international experts to find new ways to measure economic progress taking into account social well-being.