£90BN SUMMER BOOST FOR ECONOMY
Good news at last as Britain booms
BIG-SPENDING Britons are set to give a £90billion boost to the economy this summer.
A combination of scorching weather, World Cup fever and renewed confidence over Brexit have created an atmosphere of unparalleled optimism among consumers. The positive mood began with the wedding of the
Duke and Duchess of Sussex last month. And the good times are set to continue with England firing in the football, our cricketers thrashing the Australians, Wimbledon around the corner and the holiday season on the horizon to add to a set of highly favourable economic forecasts.
The British Retail Consortium estimates buoyant Britons will embark on a £1billion-a-day spending spree until the end of August.
Tim Martin, the pro-Brexit founder and chairman of pub chain Wetherspoon’s, summed up the mood of the nation last night, saying: “Employment is at a record high, household income is at a record high, the country will be more democratic, we’ve beaten the Aussies at cricket and England are about to win the World Cup. What’s not to like?”
Millions of Britons had their faith restored that Brexit can be delivered after Prime Minister Theresa May headed off a revolt by MPs and saw a key Bill passed through Parliament this week.
The celebratory mood will continue as temperatures reach 77F (25C) on what is expected to be one of the busiest weekends of the year for supermarkets, which are bracing themselves for a run on barbecue food and drink.
Sunday afternoon sees England tackle Panama in the World Cup in Russia. And as long as the team stays in the tournament Tesco England World Cup fans celebrate predicts it will sell 140 million bottles and cans of beer, more than two million pizzas and 60 million bags of crisps and snacks. Shoppers will also purchase 75,000 giant TVs and 20,000 flags.
The fine weather is expected to last into next week and beyond with temperatures tipped to top 86F in many parts.
Tesco beer, wines and spirits director Rob Cooke said: “With summer around the corner and the excitement of the World Cup there is a real party atmosphere across the country. We have ordered in extra supplies to make sure Britain doesn’t run dry.”
Asda estimates it will sell more than 25,000 BBQs and tons of charcoal as the nation prepares to spend the weekend outside.
A British Retail Consortium spokesman said: “Big national events drive purchases of party food and drink, audio visual equipment and other goods for celebrations. If the warmer weather remains then consumers will buy outdoor goods such as clothes, outdoor furniture and toys and equipment for barbecues and picnics.”
Yesterday, in a boost to millions of homeowners, the Bank of England held interest rates at 0.5 per cent. The pound rose sharply against the dollar following the announcement, trading 0.6 per cent up at 1.312.
The Bank expects the economy to roar ahead in the second quarter after growth slowed at the start of the year largely because of heavy snow. Experts say families now have more disposable income to spend.
Mintel’s latest British Lifestyles report showed consumer confidence has continued its upward trajectory over the past five years with 72 per cent of adults now describing their financial situation as “healthy or OK”.
This confidence helped to increase total consumer spending to £1.25trillion in 2017, an increase of three per cent on 2016.
Unemployment stands at a 43-year low of 4.2 per cent.
John Pearce, chief executive of Made in Britain, the non-profit organisation which helps British companies sell more, said: “Manufacturers are optimistic about the future.”
The Confederation of British Industry predicts GDP growth of 1.4 per cent for 2018 and 1.3 per cent in 2019. Chief economist Rain Newton-Smith said: “Creating extra capacity at Heathrow will allow firms to tap into global opportunities.”
National pride has been further swollen as the NHS gears up to celebrate its 70th anniversary on July 5. A recent poll found more than half of British adults include the health service in their list of institutions in which they take most pride alongside the Armed Forces and the Royal Family.
Britain’s summer sporting bonanza has barely started yet.
Economist Howard Archer said: “The better England do in the World Cup the more people will be inclined to get out their barbecues. It all helps to create a feel good factor that lifts spirits – and it will certainly not harm the economy.”