"This buys him (Mr. Osborne) some time but, politically, this debate will go on and on and will only make things better for a week or so"
-Stephen Driver, a professor of politics at Roehampton University
Growth figures published on Thursday provides relief for Osborne and Cameron a week after Fitch Ratings became the second major international agency to strip it of the U.K. top-notch credit rating. Britain's economy expanded 0.3% in the first quarter of this year and this data cannot be understated. Even though, the growth rate is still 2.7% smaller than its pre-recession peak, the first quarter data could herald a domestic revival. Latest data may finally give a reason for manufacturers to believe the Chancellor, when he said the economy is healing. In the meantime, even one quarter of respectable growth could change perceptions and restore confidence, proving that Osborne's stimulus programme and record-low interest rates are working.
"I can't promise the road ahead will always be smooth, but by continuing to confront our problems head on, Britain is recovering and we are building an economy fit for the future," Osborne said.
"This buys him some time but, politically, this debate will go on and on and will only make things better for a week or so," Stephen Driver, a professor of politics at Roehampton University in London, said in a telephone interview. "Unless something goes seriously wrong, it would be a political disaster for Cameron to replace Osborne."
© Dukascopy Bank SA