Economy struggles to maintain its pace, race for No. 10

The economic news for Q2 so far has been pretty poor. And we wouldn’t be too surprised if Q1’s expansion is the fastest rate of growth that the economy can muster for some time. Meanwhile, the ever increasing number of Conservative MPs queueing up to replace Theresa May – and their headline-grabbing pledges to raise spending and cut taxes – have dominated the news this week. We have been saying for some time that fiscal policy will probably become more supportive for the economy over the next few years than the current plans suggest. An incoming Chancellor who is more willing to loosen the purse strings than the present incumbent adds weight to this view.