Lord Mandelson tells Starmer: don’t raise taxes but do slash red tape if you win powerThe BoE is keeping interests rates at 5.25% in a bid to bring inflation down to the target of 2%for the rest of this year as well as through 2024 and 2025 as part of an increasingly gloomy prognosis for the country’s economic prospects.
“Throughout the year we’ve inferred from actual productivity growth and from actual GDP growth – but still with stubborn inflation – that at least for the time being effective supply growth isn’t that strong,” he said. His comments came after John Redwood demanded Mr Hunt ignore official forecasts from the Bank and the Office for Budget Responsibility and instead “cut the costs of government and cut taxes, to bring inflation down and boost growth”.