Short-term gain, but OBR forecasts show growth push still needed

10th December 2013

Commenting on the latest forecasts published by the Office for Budget Responsibility, published today in conjunction with the Chancellor's Autumn Statement, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said: -The OBR forecast confirms that economic growth is much stronger than previously thought at the time of the March Budget.

The projections of 1.4% for this year, 2.4% for 2014, and 2.2% for 2015 are on the cautious side, although the expectation that growth will slow in 2015 is also consistent with our view that the current spurt of growth will not continue at the present pace, so measures to boost growth are still needed, particularly around access to capital. -The Chancellor has acknowledged that the structural deficit is still too high. We agree that it is important for further action to be taken to stabilise our public finances, in spite of the lower borrowing forecasts.