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Budget 2021: Unemployment of 5.2% is below predictions | Mortgage Strategy
Mortgage Strategy
Mortgage Advisor
3 years ago
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Chancellor Rishi Sunak said unemployment peaked at 5.2% instead of the 12% expected in February 2021.

In his Budget speech today, he said two million fewer people were out of work than previously forecasted.

He also announced that the economy is expected to grow by 6%.

Sunak said inflation is forecasted to reach 4% over the next year.

The chancellor announced that the Office for Budget Responsibility (OBR) expects the country’s recovery to be quicker than previously forecast.

OBR expects it will return to pre-Covid levels at the turn of the year.

Growth is now forecast to be 6.5% this year, followed by 6% next year.

He said: “This is a global problem. It has been caused by rising energy prices and problems with supply chains.

“It would be irresponsible to pretend these problems can be solved overnight.

“The UK cannot address them on their own. But it will act where it can.

“The  government has taken measures to address the HGV driver shortage, and today there is new funding to improve lorry parks.

“The HGV levy, already suspended until August, will be suspended for a further year and vehicle excise duty for heavy goods vehicles will be frozen.”

The International Monetary Fund (IMF) recently said the UK economy might lag behind its G7 competitors in the race to recovery.

While other major economies should return to the economic growth expected prior to the pandemic, the IMF expects the UK’s economy to still be 3% smaller in 2024.

The Institute for Fiscal Studies considers that the UK is going through a “sharp but incomplete and widely imbalanced” recovery.

This is because it found the rebound to be limited to certain sectors of the economy and subject to regional imbalances.


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