RACHEL Reeves was handed a pre-Budget boost as the economy is set to grow FASTER than expected this year, new figures show.
The Chancellor was given the boost by the International Monetary Fund declared the battle against inflation “has largely been won”.
1
The upgrade comes after Ministers have been accused of peddling doom and gloom about the UK which has dented business and consumer confidence.
Growth in the UK is now expected to be 1.1 per cent for 2024 up from a forecast of 0.7 per cent projected back in July.
The IMF stated that the world economy this year will grow by 3.2 per cent rather than its previous estimate of 3.3 per cent.
Chancellor Rachel Reeves said: “It’s welcome that the IMF have upgraded our growth forecast for this year, but I know there is more work to do.
“That is why the Budget next week will be about fixing the foundations to deliver change so we can protect working people, fix the NHS and rebuild Britain.”
Sir Keir Starmer and Ms Reeves have put growth as a key mission at the start of their time in office.
Ministers have repeatedly said that strong economic growth will help deliver vital public services such as the NHS and education system.
But the Chancellor has warned of a £22 billion financial black hole as she prepares for next Wednesday’s Budget.
It’s also understood that the Treasury are also looking at a funding gap overall of some £40 billion which will include building a financial buffer to withstand economic shocks.
The IMF also said that UK inflation for the year will be higher than expected at 2.6 per cent, up from a previous forecast of 2.5 per cent.
Their inflation figure for next year was set at 2.1 per cent which is up from 2 per cent previously.
The rate for UK unemployment is set to have been 4.3 per cent for the whole of this year compared to the earlier estimate of 4.2 per cent.
But they warned in their World Economic Outlook that there is uncertainty in the forecasts due to a raft of elections – including the US on November 5.
They said that there could be “significant shifts” in trade and fiscal policy which could change future growth in different regions.
Reeves will travel to Washington DC at the end of the week to meet finance chiefs at the IMF annual meetings.
