GDP growth resulting from Mini Budget 'will be offset by higher interest rates'

Top economic think-tanks tell MPs

GDP growth resulting from Mini Budget policies will be squeezed out by higher interest rates from the Bank of England in an attempt to control inflation, economic think-tanks told the Treasury Select Committee yesterday (22 September).

Chancellor Kwasi Kwarteng is set to announce a fiscal statement, or Mini Budget, at 9.30am today (23 September), where he is expected to unveil a package of tax cuts to promote economic growth, as well as how it will pay for an energy price guarantee for households and businesses.  Speaking to MPs in Parliament, Torsten Bell, chief executive of the Resolution Foundation, a think-tank, said that given the large scale of the fiscal policy plans, GDP will "almost certainly be higher this winter than it would otherwise have been". Mini Budget 22: Treasury warned that spending support coul...