A vote of confidence in the UK markets has been provided by the Office of Budget Responsibility as they publish a revision to their Economic and Fiscal Outlook today.
The report contains forecasts for the economy and the public finances, with growth forecast upwards for the year from 1.2% to 1.8%.
Whilst this is great news for this year, for 2011 growth forecasts have been cut from 2.3% to 2.1% – and 2012 growth forecasts have been cut too – from 2.8% to 2.6%.
Reasons givens include the expectation for slower growth in the medium term with the upcoming VAT increase to 20% and spending cuts totalling £81bn.