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Oil price boost for UK economy

Monday, February 16, 2015 - 01:24

A British employers group has raised its forecasts for UK economic growth this year on the back of low oil prices. Grace Pascoe looks at the significance of the increase and whether other countries are seeing the same boost.

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Jaguar Land Rover is a British success story. A perfect place for a campaigning politician to promote his economic plan. Labour leader Ed Miliband wants to tackle tax avoidance and create more apprentices. SOUNDBITE: UK Labour Leader, Ed Miliband, saying: "We need a better plan to ensure millions more businesses succeed and create wealth. We need a better plan to make us more productive as a country, more inclusive in our prosperity, with every person in Britain feeling they have a stake in the future and a stake in our economy." At the moment Britain's economy seems to be doing just fine. A UK employers group has raised its economic growth forecast for 2015 from 2.5 percent to 2.7. The Confederation of British Industry says it's all down to falling oil prices and the rising cost of homes. Christian Schulz of Berenberg Bank says it's is not the only country feeling the benefits. SOUNDBITE: Berenberg Bank, Senior Economist, Christian Schulz, saying: "I think we are increasingly seeing in many oil importing countries that cheaper petrol prices mean consumers have money in their pockets for other things and because of the distribution effects of it, the consumption impact is quite strong." Britain might be motoring along nicely at the moment but a lot can happen in the three months to the UK election - a crisis in Greece for example. Britain still relies on the euro zone for much of its trade.

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Oil price boost for UK economy

Monday, February 16, 2015 - 01:24