George Osborne warns of economic ‘uncertainty’

George Osborne warned of “uncertainty” today as it was revealed Britain’s economy grew slightly faster than thought last year.

Official figures also showed families are saving less of their money than ever, suggesting that they have nothing left to cushion against shocks.

Separate statistics for trade and investment were described by experts as “truly horrible”, with the current account deficit hitting its highest level since records began.

The Chancellor welcomed the growth figure but warned of “a real danger of economic uncertainty” that meant it was too risky for people to vote to leave the European Union.

The Office for National Statistics said GDP grew 0.6 per cent in the fourth quarter of last year, up from the previous estimate of 0.5 per cent.

The revision was triggered by a stronger performance from the services sector and a smaller contraction within industrial production.

The economy also fared better for the whole of 2015 than previously recorded, with GDP being revised up to 2.3 per cent from 2.2 per cent. However, the current account deficit widened to £32.7 billion in the fourth quarter, compared with £20.1 billion in the third. That put the deficit as a share of national income at a record seven per cent, the highest since records began in 1955.

It came as Bank of England governor Mark Carney said monetary policy alone could not fix financial woes.

Mr Carney said the biggest vulnerability the global economy faces is its low nominal growth and low-interest rate environment that creates great challenges for firm, bank profitability and policymakers.

“In the end, if you don’t have profitable financial institutions then gradually that resilience is undercut,” he said.