Chancellor Rishi Sunak says a wave of cash from rich companies will drive the recovery
The chancellor announced that money-rich companies and consumers will unleash a wave of spending to accelerate Britain’s recovery from the epidemic.
With analysts indicating that the UK is heading towards the strongest year of economic growth since World War II, Rishi Sunak indicated that there is a £ 100bn in British corporate bank accounts awaiting investment.
This came as Bank of England figures showed that households saved another 16.2 billion pounds in March, bringing the total amount disposed of during the pandemic to 203 billion pounds. The bank also said that mortgage lending hit a record £ 11.8 billion in March.
Spending Power: Chancellor Rishi Sunak has indicated that there is £ 100 billion in UK corporate bank accounts awaiting investment
In another batch, research group IHS Markit said its UK manufacturing activity index stood at 60.9 in April – the best performance in 27 years.
“ As we look to the reopening in the coming weeks and months, there are indications that we are cautiously optimistic and we can see that in the data, ” Sunak said at the CEO Summit at The Wall Street Journal. I hope it continues through the rest of the year.
We are seeing consumer confidence return to pre-pandemic levels. We know there’s an enormous amount of excess savings. We tried to put things in place to unlock some of that money. The signs are promising.
Bank of England chief economist Andy Haldane said the economy will rebound like a “cabbage spring” as some of this money is spent from “casual savers” after restrictions are removed.
Analysts at Goldman Sachs believe that the British economy will grow by a “staggering” 7.8 per cent this year after last year’s decline of close to 10 per cent.