The Tories Have Averted Economic Disaster - But Can They Stay The Course?

Sunak and Hunt cannot relax yet after only undoing damage done by Truss and Kwarteng

- Chris Blackhurst

This is the time of year when the UK downs champagne by the bucketload. The season is upon us, beginning with the Chelsea Flower Show, leading to the Derby, Wimbledon, Glyndebourne, Royal Ascot, Henley. In the mix, too, are festivals galore. And the weather is improving at last. Raised glasses all round!

Now, thanks to the IMF, the cause for celebration is suddenly doubly strong. According to the fund, the UK economy has turned a corner. The country is not expected to suffer a recession this year, nor will it have the weakest economic growth in the G7 group of leading industrialised economies. A predicted 0.7 per cent contraction has been replaced by 0.4 per cent growth. Compare that as well with Germany, on course for “near-zero” growth.

What’s more, the Bank of England is declaring that inflation is also heading downwards. Forget the fizz, make that a treble! It’s true there is much to cheer. But at the risk of being Eeyore: not yet Pooh, not yet.