Experts release rare piece of good news on tax as new forecast issued | Personal Finance | Finance [Video]

Angela Rayner asked about two-child benefit cap

Some welcome news for the British economy could give the Chancellor room to avoid tax rises and spending cuts – and even remove the two child cap on benefits.

Economists at the EY Club are the latest of a number of City experts to predict that UK growth this year will be higher than originally thought.

Its experts have raised their growth forecast from 0.7 percent to 1.1 percent, which follows similar upgrades from analysts at Goldman Sachs, Barclays and Deutsche Bank.

If the economy grows more quickly than predicted, with better tax income for the Treasury, the Chancellor Rachel Reeves may have more money to play with than expected.

That could, in theory, head off some tax rises and public spending cuts or even – potentially – provide the estimated £3 billion needed to remove the two child cap on benefits.

Experts have raised their growth forecast from 0.7 …