UK Treasury chief predicts no recession in Britain this year
The U.K. is likely to avoid a recession this year, Treasury chief Jeremy Hunt said Wednesday, adding a bit of surprise to what had been billed as a boring budget meant to restore confidence and stability in the nation’s finances
LONDON (AP) — The U.K. is likely to avoid a recession this year, Treasury chief Jeremy Hunt said Wednesday, adding a bit of surprise to what had been billed as a boring budget meant to restore confidence and stability in the nation's finances.
An improving global economic picture, combined with government plans to stimulate growth, mean the British economy won’t slip into a “technical recession” this year, defined as two consecutive quarters of contraction, Hunt said, citing analysis from the independent Office for Budget Responsibility. As recently as November, the OBR forecast that the economy would shrink throughout 2023.
The improved outlook gave Hunt enough financial headroom to offer more than 9 billion pounds ($10.8 billion) of tax incentives for businesses that invest in the economy, as well as programs intended to lure mothers and older people back into work.
But there was no money for striking teachers, civil servants and young doctors who staged a noisy protest outside Parliament while Hunt delivered his speech. The strikes are similar to widespread unrest in France about the economic situation and plans to increase the retirement age.
