Brexit boost! UK economy forecast to grow more after Boris Johnson election win

The EY Item Club now predicts the UK economy will grow by 1.2 percent this year, as opposed to 1 percent as previously forecast. It has also boosted its UK growth forecast for 2021 from 1.5 percent to 1.5 percent.

EY Item Club said more Brexit certainty after December’s election result and improved household living standards will boost the economy this year.

On December 12 Boris Johnson’s Tories won a dramatic electoral victory, securing 365 MPs and an absolute majority in Parliament.

By contrast Labour lost 60 seats with the party suffering its worst defeat since 1935.

The EY Item Club report also predicts British households disposable income will rise by 1.8 percent, whilst house prices will increase by 2.8 percent.

Separately accountancy firm Deloitte also suggested the UK economy is set for growth.

It released a report “signalling a more optimistic mood as consumers enter 2020”.

The document added: “With political uncertainty lifting, so too has consumer sentiment on the state of the economy, job security and personal finances.”

Britain is due to leave the EU later this week on January 31.

To mark the event union jacks will be hung around Parliament Square whilst London landmarks are lit up in red, white and blue.

A special ‘Brexit’ coin has also been unveiled by Chancellor Sajid Javid.

Approximately three million will enter circulation on Friday, to mark Britain’s EU exit, with another seven million to follow later in the year.

The coin is inscribed with the wording “Peace, prosperity and friendship with all nations” as well as the date Brexit will take place.

Mr Javid commented: “Leaving the European Union is a turning point in our history and this coin marks the beginning of this new chapter.”

Coins had been minted ahead of October 31, when Britain had been due to leave the EU, but had to be melted down when this deadline was missed.

However the commemorative coins have also caused controversy with some Remain activists saying they will refuse to use them.

Lord Adonis, a Labour peer who has fought ardently to reverse Brexit, tweeted: “I am never using or accepting this coin.”

Meanwhile, Alistair Campbell, Tony Blair’s former spin doctor, shared a similar message as he claimed he will ask till workers for change to make up the 50p should he receive one in the future.

He tweeted: “I for one shall be asking shopkeepers for ‘two 20p pieces and a 10’ if they offer me a 50p coin pretending that Brexit is about ‘peace, prosperity and friendship with all nations’ given it puts all three at risk.”

Celebrations are being organised in Parliament Square by campaign group Leave Means Leave, with the support of Brexit party leader Nigel Farage.

Brexit Secretary Stephen Barclay said the UK is aiming for a “zero tariff, zero quota” free trade deal with the EU.

The Government wants a new agreement to be in place by the end of 2020.

It is also hoping to negotiate an agreement swiftly with the United States, with President Trump having voiced his support.