Economic Growth
Question
Jim Shannon
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of forecasted trends in the level of global growth in the next five years.
Answer
Gareth DaviesAt Spring Budget, the Chancellor announced a package to boost economic growth by removing the barriers to work to increase labour supply, reforming the UK’s tax system to incentivise business investment and improve productivity, and continuing to support the UK’s high growth sectors through better regulation.
The Office for Budget Responsibility expect that this package will result in the largest policy-induced permanent increase in UK GDP in their medium-term forecast. While international economic conditions remain challenging, the UK has exceeded expectations, leading to the IMF and OECD to revise up their UK growth forecasts, while taking into consideration global macro-economic conditions.