Britain BOOMS after EU vote: Ignore the doom-mongers…it’s good news all round

BRITAIN has been boosted by a host of positive economic reports putting paid to scaremongers who promised a financial crisis if we left the EU.

The Bank of England admitted it saw “no evidence” of a sharp economic slowdown and the pound gained in strength as a result.

Positive job figures showing unemployment falling and record numbers in work were heralded by new Prime Minister Theresa May.

Average earnings in the year to May were up 2.3per cent, official figures revealed, and mortgage brokers reported a brisk trade from foreign investors.

The FTSE index of the UK’s top 100 companies soared to an 11 month high, closing above the 6,700 mark for the first time since August.

The Bank of England, whose governor Mark Carney warned in May that Brexit was likely “to have a negative impact in the short term” reported that no such impact could be detected.

The Bank’s network of “regional agents” said UK firms were trying to maintain “business as usual” and the Bank said: “As yet, there was no clear evidence of a sharp general slowing in activity.”

The Bank’s agents said there had been a post-referendum dip in housing market activity but transactions had so far proved more resilient than some people had expected.

I’m delighted the IMF have climbed down and agree there will be no UK recession
Cabinet minister John Redwood
There was also “little evidence of any impact on consumer spending on services and non-durable goods” although some people were thought to be “more hesitant” about big purchases.

On Tuesday, the IMF — whose head Christine Lagarde warned in May that the consequences of Brexit would be “pretty bad to very, very bad” — forecast UK growth in 2017 to be 1.3 per cent, the fastest in Europe ahead of both France and Germany.

At home, the Office for National Statistics reported that employment reached an new record high of 74.4 per cent of the working age population, with 31.7 million people having jobs in the three months to May, 176,000 up from the previous quarter.

A total of 1.65 million people are unemployed, a fall of 54,000 over the quarter and 201,000 down compared with a year ago and an eight-year low, while the 4.9 per cent jobless rate was lower than any time since 2005.

Mrs May chose to open her debut Commons question time session as PM by welcoming the employment figures.

She also promised to pursue her goal of “an economy that works for everyone … that delivers jobs and well-paid jobs in particular” while “living within our means”.

She told Labour leader Jeremy Corbyn: “I assure you that we are focused on building a country that works for everyone. That means an economy that ensures that everyone can benefit from the nation’s wealth, a society where everyone gets the opportunities they deserve and a democracy that everyone can have faith in.”

Later hailing recent aerospace deals and investments, she stressed: “Britain is open for business. I would encourage other companies to go out there and get that business.”

Work and Pensions Secretary Damian Green responded to the ‘remarkable’ employment figures: “This shows that there are more people in work than at any other point in our history, which is fantastic news as we build a Britain that works for everybody, not just the privileged few.

“We’ve entered a period of significant change, but when it comes to our jobs market we’re in a position of strength, with over 2.6 million more people in work than there were in 2010, the number of workless households cut to an all-time low, 750,000 vacancies in the economy and wages rising too.

“Our job now is to build on this success story so that everybody can benefit from the opportunities that are being created regardless of who they are or where they come from. Encouragingly, employment has risen in all regions and nations of the UK over the last year.”

Separately, estate agents reported that interest in the UK property market from overseas buyers was up 50 per cent since the Brexit vote, largely credited to the fall in the pound making such investments cheaper for foreign and expat buyers.

The reports belied predictions the referendum result would scare off foreign buyers.

Peter Wetherell, of upmarket London estate agents Wetherell, said: “Many potential buyers had been putting off their decision and waiting for the referendum result to see how the land lies.

“But now we have the result and a large number of buyers are back asking about properties to purchase.”

Conservative former Cabinet minister and Brexit backer John Redwood said of the IMF’s predictions: “I’m delighted the IMF have climbed down and agree there will be no UK recession. I’m delighted they now agree the UK will grow faster than France or Germany or Italy next year — though I think they’re underdoing it.

“I am increasing my forecasts for UK growth because there is a monetary loosening going on and the low value of sterling will help our exports.”

Mr Redwood hailed banking giant Wells Fargo’s decision reported this week to invest in a new £300 million London HQ as “another great vote of confidence”.

Mr Redwood went on: “I think things will be even better now when we’re making our laws and trade deals and showing we are more open for business.

“I think business people are just beginning to realise how restricted they were by all the tariffs and rules the EU imposes.”

He expected a possible slight slowdown of activity this summer said this would be temporary and he stressed that top end property deals had already been hit by new tax rules introduced in April to tackle money laundering.

Mr Redwood added: “The good news is that people aren’t rushing for the exit in the way some people forecast because they are realising that it’s in the EU’s interests as well as in Britain’s interests to have no-tariff trade with fewer barriers between the EU and the UK. What’s not to like?”

UK Independence Party MP Douglas Carswell also hailed the retreat by economic forecasters on their pre-referendum gloom-mongering, saying: “It’s a bit like the Wizard of Oz. When you draw back the curtain you realise that those economic wizards who are supposed to have magical powers turn out to be a bunch of rather confused middle-aged men.

“Either they are incompetent and have no more idea as to what’s going to happen in the economy than random members of the public, or they connived with George Osborne to scaremonger people into voting to stay in the EU.”

Mr Carswell acknowledged there were concerns about the economy but said they did not arise from the Brexit vote: “They are because we failed to fix the banks and we ran our monetary policy as the IMF told us to.

“We need to rediscover a bit of self confidence.”