GDP reaction: Government must “stick to its guns” says IPPR

IPPR has reacted to this morning’s quarterly GDP data release from the ONS, Pranesh Narayanan, economist at IPPR, said: 

“Higher than expected growth should be taken as a sign the government is heading in the right direction. The Bank of England expects the economy to grow even faster later in the year as the boost from higher public spending kicks in. The ship is starting to turn around.  

“The pessimism post-budget seems to have been overplayed as firms prepared for the pain of higher taxes but couldn’t yet see the benefits of increased spending. 

“Crucially, the government needs stick to its guns at the spending review. A strong economy needs well-funded education, healthcare, and legal systems—plus much needed long-term investment.”