UK Set to Roar Back

Updated: Feb 26, 2021

Bank of England chief economist declares Britain a 'coiled spring' and predicts a spending boom when Covid-19 restrictions are lifted.

Britain's economy will bounce back like a 'coiled spring' once liberated from lockdown, says Bank of England chief economist Andy Haldane, insisting that the public are 'desperate to get their lives back'.

He believes a 'decisive corner has been turned' thanks to the Covid-19 vaccine rollout - and families are ready to fuel a rapid return to prosperity with a multi-billion pound spending spree.

'The recovery should be one to remember, after a year to forget. A year from now, annual growth could be in double-digits.' Mr Haldane predicts that by the end of June households will have amassed 'accidental savings' adding up to a colossal £250 billion.

He believes they will spend a big chunk on socialising after being 'bottled in' for months, unable to enjoy holidays or meals out. The influential economist argues there are 'enormous amounts of pent-up financial energy waiting to be released' and people will grasp the opportunity once they can safely resume their normal activities.

'Having been bottled in for a year, most people are desperate to get their lives, including their social lives, back,' he writes. 'When given the opportunity to do so safely, they will seize it.'

The upbeat assessment came as Boris Johnson moved to reassure Tory MPs that his plan to ease the lockdown will not be delayed.