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Chancellor Philip Hammond has delivered his Spring
Statement 2018, and on his promise to move away
from two major iscal announcements every year.
There was no red briefcase, no red book, and no
tax changes as the chancellor announced updated
economic forecasts in a speech lasting less than
half the length of any of his previous statements.
Not that it comes as a surprise seeing that
Hammond moved this to a Tuesday, rather than
keeping it in its usual slot straight after prime
minister’s questions on a Wednesday.
Far from being a second inancial statement of the
tax year, the chancellor unveiled the latest economic
forecasts alongside a raft of consultations.
The Ofice for Budget Responsibility (OBR) revised its
forecast for growth up to 1.5% – a rise of 0.1% on the
previous forecast announced in Autumn Budget 2017.
However, GDP is expected to fall back to 1.3% in
2019 and 2020 as the OBR left its November 2017
forecast unchanged.
Borrowing fell to £45.2 billion in 2017/18 – £4.7 billion
lower than the OBR’s forecast in November 2017,
while Hammond conirmed any further borrowing is
expected to fund capital investment only.
Debt is also expected to start falling as a share of
GDP in 2018/19, according to the OBR.
Aside from updated economic forecasts, the rest
of the chancellor’s attention focused on policy
consultations – some new, others previously
announced.
These consultations may feed into Autumn
Budget 2018.
A STATEMENT WITH FEW
ANNOUNCEMENTS