While the previous Tory government often set out a Spring Budget, the Treasury has said it will only produce one “fiscal update” per year in the autumn “to give families and businesses stability and certainty on upcoming tax and spending changes.”.
He said: “One thing the government has already recognised is that increasing productivity stimulates the right sort of growth - growth with lower inflation and higher wages and living standards.
Meanwhile, while the Bank of England cut interest rates this month, it expects inflation to remain high and halved its economic growth forecast for the UK this year from 1.5 per cent to 0.75 per cent.
Matthew Parden, chief executive of money management app Marygold & Co, said the difficulty is that consumer spending drives significant growth, and depends on high levels of disposable income in households and a strong labour market with rising wages.
Over the longer term, said Moriarty, the single most effective measure to raise growth rates in the UK economy is supply-side reform, enabling faster housebuilding and transport infrastructure among other things.
