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What next for Cameron's economy?

Friday, May 08, 2015 - 01:45

After a dramatic election victory, David Cameron arrives back at Downing Street. He pinned his election campaign on hopes of growing the UK economy. Ciara Lee asks what challenges await him.

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A royal visit after a royal win. Britain's re-elected Prime Minister meets the Queen, knowing he's secured an historic victory. David Cameron's Conservative party won an unexpected majority, overturning poll predictions and leading to a string of resignations by his opponents. (SOUNDBITE) (English) BRITISH PRIME MINISTER DAVID CAMERON, SAYING: "I have just been to see Her Majesty the Queen and I will now form a majority Conservative government. I have been proud to lead the first coalition government in 70 years and I want to thank all those who worked so hard to make it a success. The Conservatives had campaigned as the party of jobs and economic recovery. They were helped by the fact that last year Britain grew faster than most other rich nations. But Dominic Johnson, CEO of Somerset Capital Management, says Cameron has his work cut out. (SOUNDBITE) (English) DOMINIC JOHNSON, CEO, SOMERSET CAPITAL MANAGEMENT: "One thing that wasn't really discussed during the election was the fiscal position of the UK and we are still running a huge deficit. We are borrowing each month more than we are spending on defence practically. These are serious issues for us to face. So it is going to be incredibly difficult to make that balance between investing in public services and making sure we don't get over taxed." CUT HERE And also playing down the deficit." Markets rallied but investors remain wary of constitutional challenges. Cameron's promised to hold a referendum on European Union membership within two years. The Scottish National Party's landslide victory north of the border may also prompt another vote on independence there. But for now it's jubilation for the ruling party. And the economy is expected to stay on course in 2015. Latest private sector surveys show companies are upbeat about demand, especially as the euro zone shows signs of growth.

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What next for Cameron's economy?

Friday, May 08, 2015 - 01:45