Economists have cautioned that Labour requires a “growth miracle” to finance its public service ambitions ahead of the King’s Speech.

Experts have expressed skepticism about the new Government’s capacity to significantly boost the economy, anticipating a continuation of the sluggish growth seen since the global financial crisis.

According to Bloomberg’s monthly survey of 56 forecasters, the economy is projected to expand by only 0.8% in 2024 and 1.3% the following year.

This comes as Sir Keir Starmer’s legislative agenda will be unveiled by the King during the State Opening of Parliament tomorrow.

In her first speech as Chancellor, Rachel Reeves stated, “By growing our economy we can rebuild Britain and make every part of the country better off.”

Dennis Shen, a senior director at Scope Ratings, commented, “Absent a growth miracle like the one targeted by the government, budget consolidation may prove challenging. Although potential reforms can certainly support medium-run economic growth, our trend-rate-of-growth estimate of 1.5% a year remains unchanged at this stage.”

Recent figures revealed that the economy grew by 0.4% in May, twice the pace expected by economists, with GDP expanding by 0.7% in the first three months of the year.