Breaking The UK’s economic growth could come close to US levels, Jeremy Hunt predicts ahead of inflation figures being published EnglishHeadline

Britain’s financial progress charge might come near US ranges, the Chancellor has predicted forward of the publication of the newest inflation figures.

In an upbeat evaluation of the financial system, Jeremy Hunt mentioned it was ‘completely attainable’ the UK might develop sooner than Europe.

US GDP grew by 3.2 per cent within the final quarter of 2023, figures present, whereas the UK financial system shrank by 0.3 per cent. Eurozone financial progress was flat in the identical interval.

The US financial system defied recession fears, helped by a rise in rates of interest to tame inflation and a good labour market which has saved wages excessive.

Showing earlier than friends on the Financial Affairs Committee yesterday, Mr Hunt spoke of efforts to boost productiveness in the private and non-private sectors.

Jeremy Hunt speaks to Rishi Sunak after presenting the annual price range assertion within the Home of Commons on March 6

Rishi Sunak and Jeremy Hunt pause throughout a go to to a builders warehouse in London on March 6

He mentioned: ‘When you take a look at our insurance policies to extend funding by the non-public sector with the total expensing tax break that we introduced, if you happen to take a look at our nurturing of the expertise sector which I feel goes to be an incredible alternative for the UK going ahead.

‘It is completely attainable to get our financial progress charge healthily nearer to US ranges of progress in comparison with continental European ranges of progress.’

The Chancellor additionally mentioned he didn’t consider the will increase within the tax burden needs to be ‘irreversible’.

His feedback come as inflation is predicted to have fallen to a contemporary low of almost two and a half years immediately when official knowledge for February is launched.

Most economists anticipate the figures from the Workplace for Nationwide Statistics (ONS) to indicate inflation fell to three.5 per cent in February – down from 4 per cent in January and the bottom since September 2021, when it was 3.1 per cent.

It comes forward of the Financial institution of England’s newest rate of interest resolution tomorrow, with policymakers are anticipated to carry charges at 5.25 per cent.

However one other steep fall within the Shopper Costs Index could reinforce expectations the Financial institution is transferring nearer to slicing charges later this yr.

Writing in immediately’s Day by day Mail – 4 years on to the day from the introduction of the furlough scheme – the Prime Minister says the financial system is ‘displaying sturdy indicators of restoration’.

Rishi Sunak says the scheme ‘efficiently saved 1000’s of companies from going below and thousands and thousands of jobs from being misplaced’, and now ‘we’ve nicely and really turned a nook’.

‘Furlough protected jobs and due to our success in bringing stability to the financial system, controlling inflation and gripping spending, we’re nicely and really on the trail to sustainably decrease taxes.

‘We began that journey within the autumn with a 2p minimize to Nationwide Insurance coverage value £450 for the typical employee on £35,400 a yr. And the Chancellor minimize taxes once more on this month’s price range which now signifies that 27million staff will get a mean tax minimize of round £900 a yr.’