Britain is growing. Can Rachel Reeves start spending?

The OECD’s interim Economic Outlook report has landed this morning and its forecast for the UK has been revised significantly upwards. Having predicted in May that the economy would grow by 0.4 per cent this year, the policy organisation now expects the economy to grow by 1.1 per cent. This lifts the UK from the bottom of the pack of advanced economies and ties it in second place – alongside France and Canada – for the fastest growth in the G7.

The news comes as the OECD declares that the global economy is ‘turning a corner’ (the name of today’s report), as global GDP looks set to ‘stabilise’ at 3.2 per cent in 2024 and 2025, while the majority of the 38 countries represented by the OECD have managed to get a grip on inflation, returning their rates to – or near to – target.