Lower borrowing costs now to get Britain growing again, says ALEX BRUMMER

Lower borrowing costs now to get Britain growing again, says ALEX BRUMMER By Alex Brummer for the Daily Mail Updated: 17:20 EDT, 11 July 2024 e-mail View comments Just as well that Rachel Reeves is taking time before delivering her first Budget. The economy is picking up pace, exposing frail forecasting by the Office for Budget Responsibility (OBR) and the Bank of England. This week the Chancellor was still in election mode, claiming the Tories have left the economy in the worst shape since the Second World War.

In comments on the latest healthy output data, there was a lengthy note on how much total output or GDP has been lost since 2010. A quick reminder: successive governments have had to live through triple shocks of Labour’s great financial crisis, Covid-19 and the energy price shock. All of that is behind us.

After a dashing 0.7 per cent rise in output in the first quarter, the economy looks set for a similar rise in the current three months. Soft landing: Britain's new Chancellor Rachel Reeves (pictured) moves in to 11 Downing Street just as the economy is beginning to pick up pace Goldman Sachs is lifting its 2024 forecast to 1.

2 per cent, which if the progress continues, and there may be interest rate cuts to come, looks modest. Even that places the OBR forecast of 0.8 per cent growth this year, the market consensus of 0.

7 per cent and Bank of England’s miserable projection of 0.4 per cent in the shade. Bank forecasting is sadly wanting, as we know from former US.