Chancellor will forecast a ‘new age of optimism’ in Budget announcement

Chancellor Rishi Sunak will reportedly forecast “new age of optimism” in today’s Budget announcement.

He is set to discuss creating a “stronger economy of the future” with the promise of policies such as a hike to the minimum wage, NHS funding and regional urban investment projects, all of which have been trailed in the press over the past few days.

However rising inflation has the potential to wipe out the ‘real’ benefit of certain funding hikes.

Yesterday, Business Minister Paul Scully said he was unable to say whether the public sector pay rise will be over 4%- in line with inflation forecasts- when quizzed by Sky News.

The Times has said if GDP growth figures are paired with “favourable” employment figures, the Chancellor could have another £20 to £30 billion available to spend.

Economists have said it is likely that the Office for Budget Responsibility will predict around 7% GDP growth for 2021, after predicting just a 4% jump earlier this year, after slumping by 9.7% in 2020.