JEREMY HUNT made a dash for growth today as he hailed a boost to Britain’s short-term economic outlook, putting the country on course to avoid a recession this year.
In his first Budget, the Chancellor also trumpeted an expected sharp fall in inflation, from just over 10 per cent to around three per cent by the end of the year. He lifted some of the economic gloom as he unleashed a carrot-and-stick drive to increase Britain’s workforce and business investment to ramp-up economic growth. “Today we face the future with extraordinary potential,” he said.
GDP, the nation’s output, was still expected to fall, possibly by around 0.2 per cent this year, but far less than the drop of 1.4 per cent predicted in the autumn, and a big enough improvement to avoid a recession — defined as two consecutive quarters of negative growth.
Higher tax receipts and lower spending on some schemes such as the energy price guarantee, after the sharp fall in the cost of gas, have boosted the Treasury’s coffers. The economy is then set to grow by nearly two per cent in 2024, a figure which will raise hopes among Tory MPs of significant pre-election tax cuts, which some of them are demanding now. However, forecasts for the two following years were expected to be down. In a further sign of possible tight public finances in coming years, the Chancellor’s fiscal headroom is set to fall from just over £9 billion to about £6 billion towards the end of the forecasting period.
This story is from the March 15, 2023 edition of Evening Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the March 15, 2023 edition of Evening Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
ARCHER’S BACK FOR WORLD T20 DEFENCE
ACEMAN IN PROVISIONAL SQUAD AFTER LONG SPELL ON SIDELINES | DUCKETT, JORDAN, HARTLEY IN... BUT WOAKÉS AND AHMED MISS OUT
Clock ticking for Maddison to rediscover magic touch and secure place at Finals
TOTTENHAM'S north London derby defeat was another frustrating outing for James Maddison, who was withdrawn shortly after the hour-mark with his side trailing 3-0.
Martinelli must work out a new way or face bench role
Brazilian sparkled last term but now faces threat from Trossard
Nationwide boss sold £150,000 of Virgin Money shares before bid launch
NATIONWIDE Building Society chief executive Debbie Crosbie sold £150,000 worth of shares in Virgin Money before she launched a £2.9 billion takeover bid for the business in March.
Quinn shocks City with surprise HSBC departure
HSBC was thrown into turmoil today when its £10 million-a-year CEO suddenly revealed he would retire at the age of 62 in order to get “a better balance” in his life.
God knows I have my reservations, but despite them all, I'll vote for Sadiq
IT’S tough living in London these days. Knife crime is completely out of control, rents have skyrocketed, shoplifting has somehow been normalised, council tax is higher than ever and confidence in the Met is at a record low.
Western aid may be too late for brave Ukraine
THESE are desperate and difficult days in Ukraine as Russian forces seize more villages in what looks like the beginning of a major summer offensive.
Khan is out to scare you into voting for him...
London’s green candidate for mayor tells Ross Lydall the Tory campaign seems to have thrown in the towel
Visit Ljubljana for a city escape a little less ordinary
The Slovenian capital is stunning, and a short break should give you plenty of time to immerse yourself in its history, culture and great cuisine
PM warns of 'chilling effects' of - our cancel culture
RISHI SUNAK today warned that our democratic freedoms rely on tackling “the chilling effect of so-called cancel culture”. The Prime Minister was expected to say that “the shutting down people’s views” is “not what this country stands for”.
