Home run for the economy
BUDGET HELPS BOOST BRIT PROSPECTS
BRITAIN’S bruised and battered economy got a much-needed shot in the arm yesterday.
The Office for National Statistics said the economy grew faster than first thought in the final three months of last year.
While it revised 2020’s slump from 9.9 per cent to 9.8 per cent, that was still the biggest economic hit for more than 300 years.
However, there are signs the economy could recover strongly as Covid restrictions ease.
A survey today found business leaders’ optimism at its highest since just after the 2019 General Election.
Just under two-thirds of bosses polled by the Institute of Directors said last month’s Budget boosted prospects.
Firms signalled an increase in investment and hiring plans.
Chief economist at the IoD, Tej Parikh, said: “After an enduring year defined by challenge after challenge, the clouds are finally parting for businesses.” Separately, the British Chambers of Commerce said the third lockdown “severely limited” firms’ trading, but confidence had been boosted by the vaccine roll-out. Meanwhile, experts predict house prices look set to continue rising strongly until at least the summer. Figures from Nationwide Building Society showed a slight slowdown in average prices. The year-on-year rise eased from 6.9 per cent in February to 5.7 per cent in March, blamed on uncertainty over Chancellor Rishi Sunak’s plans for the stamp duty holiday. Now that has been cleared up, prices are expected to pick up. Across the UK, the average house price was £232,134, Nationwide said.
INSURANCE market Lloyd’s of London says payouts for Covid-19 disruption are set to hit £6.2billion for 2020. The prediction came as it swung to a £900million annual loss, from a £2.5billion profit in 2019.