Growth defies slump forecast by Remoaners

THE British economy picked up pace over the summer – defying Remainers who predicted a slump – with the country enjoying five consecutive quarters of economic growth since the EU referendum vote.

National output grew by 0.4 per cent in the three months to the end of September, according to official statistics, having expanded by 0.3 per cent in each of the first two quarters of 2017.

The economy has now grown by 1.9 per cent since the Brexit vote last year.

It makes a mockery of former Chancellor George Osborne’s claims in the run-up to the referendum that the country would plunge into an immediate yearlong recession if Leave won.

The resilience of the economy also paves the way for the Bank of England to raise interest rates next week. They are expected to go up from 0.25 per cent to 0.5 per cent – the first rise in more than a decade.

Lloyds bank chief executive Antonio Horta-Osorio was among those hailing the solid growth in recent months. He said the economy ‘remains resilient’ and he expects to see the same levels of growth continue into next year.

Mr Horta-Osorio said: ‘It’s true you see some pressure on real wages but it is also true the weak pound will boost exports and income from assets.

‘Levels of employment have never been so high.’

The figures will also be greeted with a sigh of relief by beleaguered Chancellor Philip Hammond as he prepares for next month’s Budget.

He said: ‘We have a successful and resilient economy which is supporting a record number of people in employment.

‘My focus now, and going into the Budget, is on boosting productivity so that we can deliver higher-wage jobs and a better standard of living.’

City experts believe the latest figures are likely to have dispelled any remaining doubts as Bank of England bosses meet on Thursday next week to discuss the first interest rate rise in more than a decade.

They are expected to put the Bank rate up from its all-time low of 0.25 per cent.

The move will be seen as a boon to savers who have been forced to endure punishingly low returns on their cash, as it may increase the payments they earn from bank accounts.

However, millions of mortgage borrowers will see their monthly costs go up at once.

Hopes of a rate rise pushed the pound up 0.9 per cent against the dollar to $1.33.

Adrian Lowcock of investment firm Architas said: ‘The slightly better than expected growth figure will come as good news for the Chancellor as it gives him a bit more room to manoeuvre.

‘The figure may also provide support to the Governor of the Bank of England, who is looking to raise interest rates this year and a stronger UK economy should increase the likelihood of this happening.’

The economy remains resilient