Economy ‘held back’ by lack of growth plan

FAILURE to produce a plan for growth is holding back the economy, a former Bank of England chief warned yesterday.

Andy Haldane said it could now allow pessimism to take hold among businesses and investors.

The Bank’s chief economist until 2021, Mr Haldane said neither the Government nor Labour had a convincing strategy to grow the economy.

He told interviewer Laura Kuenssberg: ‘What is the plan to boost growth over the medium term? There were hints of it from the Prime Minister’s speech (last week), and indeed from the leader of the Opposition. But that’s still falling short.’

Restoring economic growth this year was one of five pledges announced by Rishi Sunak last week, and a Treasury source said Chancellor Jeremy Hunt was now working on a major growth package to be unveiled in the coming weeks.

Mr Haldane added: ‘This is the year where optimism and innovation and investment will only happen if we have some sense of a brighter economy for tomorrow.’

He said he was optimistic about the prospects for the economy in the second half of this year, saying that inflation had already ‘peaked in headline terms’.

‘Last year I started with hope and ended with despair,’ added Mr Haldane. ‘This year kicks off with despair, and I’m hopeful we might have a hope by the end.’