Good Old Labour16 Mar 2025 08:19
The past is the past. But it is hard not to recall that in the first quarter of last year, the UK's official growth data showed the economy going 'gangbusters'.
Rachel Reeves promised change, stability and growth. Her car crash October 30 Budget and mindless determination to talk down a mixed Tory legacy is delivering stagnation.
Major forecasters drastically have lowered projections for expansion in 2025.
In January at Davos, the IMF was projecting output of 1.6 per cent this year. That would have been helpful for the Chancellor ahead of the Spring statement on March 26. Reeves, having empowered the Office for Budget Responsibility in a bid to bolster Labour's credibility, is being hoist on her own petard.
The Bank of England says growth will be just 0.75 per cent. Goldman Sachs projects 0.9 per cent and that may not be the last downgrade.