The turnaround in the UK economy in the first two months of the New Year has been nothing short of miraculous. Both manufacturing and services output have returned to expansion, while the Government has found some spare cash with which it can do some good.

There is speculation that Rishi Sunak intervened personally to offer salary increases of 3.5% to millions of public sector workers. He remains adamant that any increase of above 5% would drive further inflation, but 3.5% is doable.

The Royal College of Nursing has called off its latest industrial action, which was due to take place next week and last for 48 hours. While this is positive, there is no guarantee that the latest offer, that has already been rejected by the union representing ambulance crews, will be accepted.

From the release of GDP data for the fourth quarter to the PSBR and encouraging output data, there is a genuine feeling that the country is finally on the right track.

While a threatened return to the political front line for Boris Johnson in the summer is being predicted, if confidence is growing in Rishi Sunak’s performance any comeback will be that much more difficult, no matter the level of support he enjoys from the Conservative back benches.

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