A forecaster has upgraded Britain’s economic growth projection after Boris Johnson’s election victory.

The EY Item Club said that less Brexit uncertainty, improved household living standards and the prospect of a budget stimulus had lifted prospects for this year and next. “The outlook for the UK has improved over the last three months, with the decisive nature of the general election result and the resulting clarity on the first stage of Brexit expected to provide a short-term boost to economic activity,” the Item Club’s quarterly outlook said.

It upgraded GDP growth from 1 per cent to 1.2 per cent for 2020 and 1.5 per cent to 1.7 per cent for 2021 and urged the Bank of England not to cut interest rates this week.