Today the Treasury will throw in the towel over its stupidly pessimistic forecasts for the UK economy this year. I expect them to come round to my view-and their view in March – that the UK econony will grow at least 2% this year, the fastest of the G7.
They should also recognise that next year the UK is likely to grow by at least 2% in line with their forecast of 2.2% in March.
If they persevere in wanting to be wrong, and slash their March forecast, the Chancellor should ignore the bad figures for tax and the deficit that results from any such forecast. The media should ask why the Treasury wants to compound their errors for this year with another foolish forecast.