Woodford believes the government is coming round to his more optimistic view of the UK’s economic prospects after the OBR upgraded expectations for growth this year from 1.4% to 2%.
His overall view is more positive on the outlook for the UK and the outlook for domestic stocks, he added.
“We are more upbeat on the outlook for the UK economy than many commentators – the market consensus, in our view, has become too bearish in the aftermath of the Brexit vote,” Woodford said.
While the UK’s debt burden is “eye-watering”, Woodford is confident it will fall much quicker over the next five years than the chancellor expects.
Hammond revealed on Wednesday the country is spending £50bn a year paying off the interest on its debt, more than is spent on defence and policing combined.
