UK is great place to invest says David Cameron as AAA credit rating confirmed

Gross domestic product grew by 0.8% between July and September — less than the 1.2% surge in the previous three months, but double the growth predicted by most economists.

The Prime Minister said there was more "welcome news" as credit rating agency Standard and Poor's revised its outlook on the UK to stable from negative and confirming the country's AAA rating.

At Prime Minister's questions Cameron used the figures to taunt Labour over the party's fears about the state of the recovery.

"The growth figures yesterday were twice as good as market expectation and of course Members opposite don't like good news, but they should celebrate it when it comes," he said.

"This was strong growth, it was largely driven by the private sector and it was accompanied by the Standard & Poor's agency actually saying we should no longer be on the danger zone for our credit rating, so welcome news.

"Honourable Members opposite who were waiting for a double dip have had a bit of double depression."

Cameron said business leaders backed the Coalition's plans and that firms across the world were starting to see that Britain was a "great place to invest". He also attacked Labour's economic plans, accusing the party of being "thoroughly dishonest" and ducking choices on cuts.

The premier also paid tribute to online grocer Ocado — whose chief executive Tim Steiner backed the Government over the cuts — for creating 2,000 jobs. He said: "Business leaders in Britain who are going to create these jobs, who employ thousands of people in our country, support what the Government is doing."

On Standard & Poor's ratings adjustment, Cameron said: "It was this Government's changes that took the British economy out of the danger zone and since the election we have actually seen interest rates coming down in Britain whereas in some other countries they have been going up.

"Why? Because they haven't taken the necessary action to get their budget and their deficit under control.

"What you are now seeing is businesses across the world recognising this is a great country to invest in because we are sorting out the mess we inherited."

Labour's Tom Harris (Glasgow South) said the Prime Minister had supported Labour's spending plans until 18 months before the general election, asking: "At what point did you decide to re-write history?"

Cameron said the Tories had ditched Labour's platform when they realised it was unaffordable, saying: "It needed to be done."

But Labour's Sharon Hodgson (Washington and Sunderland West) said her party would have made "different choices" — such as taxing the banks more heavily to avoid the removal of Child Trust Funds and health in pregnancy grants.