British PM claims economic success as UK economy grows

British Prime Minister David Cameron said Monday that the UK economy was "growing well" with one million more people in work and 400,000 more businesses created over the past three years. "The economy is growing, and growing well and is forecast to grow three times faster than the German economy. Our economy is on track," Cameron told an audience of top businessmen at the Confederation of British Industry's (CBI) annual conference held in central London. The state of the British economy and how to stimulate it dominated the speeches at the conference. Cameron said prioritizing infrastructure building was one of the main pillars of his government's strategy for growth. Cameron has personally championed a planned high-speed rail line, dubbed HS2, similar to those built in recent years in China, which will link London with major cities in the English Midlands and the North. Permission for the line has yet to be granted but the final projected cost of HS2 has already risen from 33 billion pounds (about 52.6 billion U.S. dollars) to 50 billion pounds. Cameron said, "The investment in railways is now bigger than at any time since Victorian times, a massive program of electrification and, of course, vital new routes like Crossrail, currently burrowing under London -- the biggest construction project anywhere in Europe -- and of course, the vital investment in HS2." Cameron added, "Now I'm passionate about this, we need to build new railway lines in our country. We haven't built a line north of London for 120 years." Cameron said the line was needed because it would "drive economic growth, make sure our economy shares growth between the North and South, it will link eight of our 10 biggest cities." The planned line has hit opposition from environment groups and business leaders who argue its cost will not be recouped in economic improvements. The HS2 scheme had been initiated by the current opposition Labor Party when it was in power before 2010. Media stories over the past month have focused on obstacles in the way of HS2's commencement, with a media focus on political backing. Shadow Chancellor of the Exchequer Ed Balls gave a speech at the CBI conference after Cameron, and pledged to continue support for HS2. Balls said, "Labor supports HS2 and the idea of a new North-South rail link because of capacity constraints on the existing network. But our support for it is not at any cost. The Labor Party cannot and will not give the government a blank cheque." Balls added, "As Chancellor, I would be a strong advocate for infrastructure investment. We will take a hard-headed look at the costs and benefits of the scheme ensure it is the best way to spend 50 billion pounds." (1 pound = 1.59 U.S. dollars)