Budget 2010: How did economists react?

clock

Economists are broadly positive on measures announced in the emergency Budget and are scrambling to revise their own growth forecasts in light of the austerity measures.

George Osborne forecast slower UK GDP growth in the next five years - 1.2% this year and 2.3% 2011, followed by 2.8% in 2012, 2.9% in 2013 and 2.7% in 2014 and 2015. The 2.6% forecast for 2011 is down from the 3%-3.5% estimate made in the last Labour Budget three months ago. Keith Wade, chief economist at Schroders, has reduced his growth forecasts due to the VAT rise. He initially anticipated 2.4% growth in the UK by the end of the year, but has reduced this to 2.2% because the rise was higher than he expected. Wade says the hike from 17.5% to 20% was tough, as he had anticipat...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Why investors 'can't outrun' slow-moving demographics

Why investors 'can't outrun' slow-moving demographics

'Demographic change is a key megatrend'

Darius McDermott
clock 07 March 2024 • 5 min read
Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

British ISA, Office for Budget Responsibility, tax cuts

Valeria Martinez
clock 07 March 2024 • 4 min read
Investment chiefs advocate regular adviser calls to navigate inflation

Investment chiefs advocate regular adviser calls to navigate inflation

Chief investment officers weigh in on inflation concerns

Sahar Nazir
clock 06 March 2024 • 1 min read