Responding to the latest GDP data from the Office for National Statistics, Julian Jessop, Economics Fellow at the free market think tank the Institute of Economic Affairs, said:

“We can draw two positives from today’s GDP data. The revisions show the UK economy had a bit more positive momentum in the second half of last year than previously thought. It is also clear that there is plenty of pent-up demand, with the household savings ratio at 16.1 per cent in the fourth quarter of 2020. 

“As the government eases lockdown restrictions, it is likely that the UK economy will bounce back more strongly than many are expecting. This will help to repair the public finances, too.

“Rather than cede to calls for further tax increases, the government should focus on growth-supporting measures to boost the recovery and ease the burden on households and businesses, including tax simplification, tax cuts and deregulation.”

ENDS