“Huge Opportunities Ahead of Us?”

Chancellor of the Exchequer, Philip Hammond, stood up in Parliament at 12.43pm on Wednesday, 13 March, to deliver his second Spring Statement at an inauspicious time following the House of Commons’ dramatic rejection of the Government’s Brexit deal the previous evening. He commented that: “Last night’s vote leaves a cloud of uncertainty hanging over our economy, and our most urgent task in this House is to lift that uncertainty”. He spoke for 36 minutes before commending the statement to the House.
THE ECONOMY The Chancellor reported the Office for Budget Responsibility’s (OBR) forecast for the UK economy. The figures show nine consecutive years of growth in Gross Domestic Product (GDP) and forecast that this growth would continue for the next five years. They predict 2019 will see growth of 1.2%, 2020 1.4% and the following three years 1.6%. At the same time, the country’s cyclically adjusted budget deficit is predicted to fall to 1.3% of GDP next year and is estimated to continue to fall to 0.5% by 2023, whilst CPI inflation will remain close to its 2% target for the duration of the forecast period. Borrowing is forecast to fall from £29.3bn in 2019/20, £21.2bn in 2020/21, falling to £13.5bn in 2023/24, its lowest level in 22 years, if achieved. The Chancellor announced it is the Treasury’s policy to continue to take a “balanced approach”, maintaining high public capital investment whilst borrowing and debt fall. He will initiate a threeyear Spending Review to be delivered alongside the Autumn Budget, assuming a Brexit deal is agreed.SFFS Simply Wealth Spring Statement_March 19

What money rules would you pass to the next generation? As parents and grandparents, we all hope the values that we hold dear can somehow be passed on to our children and grandchildren. We’d all like them to be able to make the right financial decisions for the future. Here are a few thoughts that might just help. Spend less than you earn It’s not easy to get ahead if you’re spending as much, or more, than you’re earning. Everyone needs a back-up fund, and one of the easiest ways to ensure you’re putting money by for a rainy day is to pay yourself first. Transferring money into a savings account on pay day can help you manage your budget better and encourage you to maintain the savings habit. If you don’t have any cash reserves, you could find yourself building up debt by putting emergency spending onto your credit card. Take control, keep on track Everyone has financial aims and learning to control money from a young age will help them become achievable. Whether it’s saving for a deposit for a home of your own or ensuring you have enough to live on in retirement, starting early, getting good advice and regularly reviewing the progress you’re making towards your goals all make good sense. If it seems to be too good  to be true… Financial scams are now widespread and come in a variety of forms. What
they offer may look appealing and be presented by people who seem plausible, but scams have resulted in people being used as money mules and risking criminal prosecution or losing substantial amounts of money to bogus or unsound investments, or even being conned out of their entire pension savings. Don’t let this happen to you. Taking financial advice about major transactions such as investments, mortgages and pensions aims to ensure that your interests will always be fully protected, and you will be able to make the right decisions for your financial future.

SFFS Simply Wealth_Winter 19

The last few months have seen the release of positive economic reports and grounds for optimism remain with regards to future growth rates, certainly in terms of the US economy. However, while no one is currently predicting the onset of a sharp slowdown or recession, there are signs that the global economy may be starting to lose momentum. The OECD* composite leading indicator, which covers advanced economies plus China, India, Russia, Brazil, Indonesia and South Africa, has been in decline since peaking in January and slipped below trend in both May and June. This led the OECD to concede that its lead indicators are: “pointing tentatively to easing growth momentum”. There are a number of potential issues that could act to restrain the pace of growth across the latter half of the year. Top of the list remains the re-emergence of protectionist policies and the continuing trade tensions between the US and the rest of the world. In addition, the prospect of a no-deal Brexit and the impact of monetary tightening in the form of interest rate rises, also have the potential to precipitate a softening in global growth over the coming months.

Autumn 2018

20 months of negotiations Theresa May finally secured a deal on the terms of the UK’s departure from the EU; but whether she has sufficient parliamentary support for her deal remains to be seen. The UK and the EU have now reached agreement on how the Brexit divorce will  work. This deal is contained within a legally- binding 585-page withdrawal agreement that officially sets out the terms of the UK’s departure on 29 March 2019. Included within the agreement are details of the £39bn ‘divorce bill’ and a 21-month transition period following the UK’s departure; future commitments over citizens’ rights, and, controversially, the ‘backstop’ arrangement to ensure the Irish border remains unmanned, if trade talks don’t provide a mutually agreeable solution.