Project Fear gets another kicking as gloomy forecasts set to be reversed

GLOOMY growth forecasts are set to be reversed in an embarrassing U-turn for budget officials, experts claimed last night.

The Office for Budget Responsibility (OBR) slashed predictions in November and warned that the deficit would rise in April.

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But economists now say the watchdog will reverse its predictions thanks to stronger tax receipts and a resilient economy in the wake of the Brexit vote, the Telegraph reported.

Martin Beck, of the EY ITEM Club, said: “The OBR may have turned negative on productivity at just the wrong time, as the latest two quarters of higher productivity growth are the strongest since 2008, so they might have to backtrack on that as well.”

The OBR acknowledged borrowing “will undershoot our November forecast by a significant margin”.

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