UK growth ‘fastest for 80 years’

BRITAIN’S economy is set to grow at its fastest pace in 80 years, according to projections from forecasting group the ey Item Club.

The UK’s output will shoot up by 7.6pc this year – soaring past previous estimates of 6.8pc – in its steepest rise since 1941.

The upgrade was driven by the rapid vaccine roll-out, and improved expectations of a bounce-back in household spending, the Item Club said.

households are estimated to have saved around £200bn since the first lockdown last year, and are getting ready to splash that cash as restrictions ease.

The better-than-expected growth will mean the economy is now set to return to its pre-pandemic peak by the end of 2021 – two quarters sooner than expected in April and almost three years earlier than the Item Club predicted last summer.

eY is now expecting growth of 6.5pc next year, up from 5pc, followed by 2.1pc in 2023 and 1.6pc in 2024.