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UK economy ‘will grow 2.8% this year, despite election’

The UK economy will take uncertainty created by the general election “in its stride” and grow by 2.8 per cent this year, the EY Item Club says.

The consultancy’s spring forecast, which uses HM Treasury’s economic modelling, predicts gross domestic product will hit 2.8 per cent this year and 3 per cent in 2016.

This is significantly higher than the official Office for Budget Responsibility estimates laid out in this year’s Budget, which suggested GDP growth would be 2.5 per cent in 2015 and 2.3 per cent in 2016.

EY Item Club chief economic adviser Peter Spencer says: “The economy is taking the election in its stride as ‘noflation’ trumps politics. The eurozone recovery is bedding in and completes the positive UK growth picture that we anticipate for 2015 and 2016.”



Mortgage Mole: Down the pan

Down the pan Overall, Mole thinks housing minister Brandon Lewis is a fairly decent chap who has not spouted the claptrap that some of his predecessors did. Being housing minister is not an easy job, either, given the relative power of the role and the mammoth number of hurdles in the way of housebuilding. So […]


Analysis: The cheap way to lose clients

Why is it that so many advisers recommend the cheapest critical-illness plan? It might be because it is the easiest plan to sell because presenting a table showing competing insurers with the cheapest at the top enables an adviser to highlight a known advantage which, unlike quality comparisons, is solid and easily recognisable. However, the […]

Leader: Time to fix housing

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Foundation Home Loans launches first-time landlord proposition

Foundation Home Loans has begun lending to first-time landlords. The intermediary-only lender has launched a 3.96 per cent two-year discount rate mortgage and a 4.19 per cent two-year fixed-rate mortgage. The products are aimed at first-time landlords and the lender will not accept borrowers who do not own their own property. Gross rental cover must be […]


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