"As we start to see the economy grow stronger -- and it is growing stronger -- as we start to see the country improve, actually I want to give people back some of their hard-earned money and try to reduce their taxes,"
- U.K. Prime Minister David Cameron
British Prime Minister David Cameron said the domestic economy is healing, and further improvement should allow the government to lower taxes. As the latest data signals stabilisation, Cameron finds it easier to reach his deficit-reduction goals, as a part of the biggest fiscal squeeze since the World War II. Due to a severe global financial crisis, the economy has started to revive later than expected, leaving Cameron's Conservatives and their Liberal Democrat coalition partners to extend their budget cuts until 2017-18, several years beyond the crucial general election in 2015.
Prime Minister also assured that in case of a victory in 2015 he will most probably cut taxes, however, he will not be able to prevent a tax hike in case the economy deteriorates. The U.K. economy avoided falling into another recession in the first quarter, as the GDP expanded 0.3%, and in addition to that, other sectors are continuing gaining momentum. Moreover, data to be unveiled on Thursday are expected to show the economy accelerated further in the second quarter, with economic output growing 0.6%, the most since 2012. Both Cameron and the Chancellor of the Exchequer George Osborne are counting on strong economic performance to boost support for their Conservative party, also known as the Tories, which is currently losing to the opposition Labour Party, according to recent polls.
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