“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