Contribution to FT’s annual UK economic survey

Phil was one of 85 economists and analysts asked to submit their answers to four questions about the outlook for the UK economy in 2020. The five questions and (edited) answers were:

1. Will the UK see a ‘Boris bounce’ in growth in 2020, and how long will any improvement last? “No. The stock market may be going gangbusters but real economic activity will be constrained by continued uncertainty over Brexit.”

2. To what extent will fiscal stimulus support the economy in 2020 and beyond? “To some extent. The previous Johnson government announced £11.7bn in current spending for public services but the manifesto added just £2.3bn by 2024. By definition, that will add some fiscal stimulus (and is a welcome change from austerity) but it is not the game-changer envisaged by Labour.

3. Will households feel better or worse off at the end of 2020? “With economic activity not likely to soar and productivity growth remaining weak, that seems unlikely. The raising of the NI threshold to £9,500 amounts to about £2 a week but that’s hardly going to make a huge difference.”

4. What should the new Bank of England governor change in the conduct of monetary policy? “Not much is likely to change in the first half of the year while the new governor gets his or her feet under the desk.”

The full responses are here