2018 Spring Statement - the economic picture

In his Spring Statement speech, Chancellor Philip Hammond responded to the latest forecasts as published by the Office for Budget Responsibility (OBR).

13 Mar 2018

In his Spring Statement speech, Chancellor Philip Hammond responded to the latest forecasts as published by the Office for Budget Responsibility (OBR).

The OBR forecasts that the UK economy will grow at a faster pace than previously predicted, anticipating that GDP growth will be 1.5% in 2018 – a rise from the figure of 1.4% that was previously predicted.

However, the OBR predicts that growth will slow in 2019, subsequently picking up over the following three years. It also revealed that the average growth rate over the forecast remains unchanged from November, at 1.4% a year.

Borrowing is set to fall over the coming years, with last year’s figure of 2.2% of GDP predicted to fall to 0.9% in 2022, with debt as a percentage of GDP also set to fall each year, within the same time frame.

In regard to the UK’s budget deficit, the OBR expects a figure of £45.2 billion this year – £4.7 billion less than previously predicted.

The OBR stated that the government’s headroom against its fiscal targets is ‘virtually unchanged’.

Register for newsletter

Why not register to receive our Monthly Newswire?

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Learn more
BAS logo Ciot logo ICAEW logo Sage logo

Home | Contact us | Site map | Accessibility | Disclaimer | Privacy | Help | clientZONE | © 2018 McIntosh Accountants Limited. All rights reserved.
McIntosh Accountants Limited, 29 Regent Road, Hanley, Stoke-on-Trent, Staffordshire ST1 3BT
Beattie Moulds Chartered Accountants, 20 Burns Street, Ilkeston, Derbyshire DE7 8AA

McIntosh and Beattie Moulds are trading names of McIntosh Accountants Limited.

Registered Address: Beattie Moulds Chartered Accountants, 20 Burns Street, Ilkeston, Derbyshire DE7 8AA

We use cookies on this website, you can find more information about cookies here.