The Guardian
24 November 2016

Philip Hammond delivered his first Autumn Statement as chancellor on 23rd November. These are the key points, together with political analysis.

Key points to note are that Philip Hammond said growth is expected to be 2.4% lower over the forecast period after Brexit. The Office for Budget Responsibility has forecast economic growth of:

  • 2.1% in 2016 – down from 2% it forecast before the EU referendum
  • 1.4% in 2017 – down from 2.2%
  • 1.7% in 2018 – down from 2.1%
  • 2.1% in 2019 – down from 2.1%
  • 2.0% in 2020 – down from 2.1%

While the OBR is clear that it cannot predict the deal the UK will strike with the EU, its current view is that the referendum decision means that potential growth over the forecast period is 2.4 percentage points lower than would otherwise have been the case.” 

Hammond predicted SLOWER growth, HIGHER inflation, WEAKER tax receipts, HIGHER borrowing. This means the economy is expected to weaken as the Brexit negotiations intensify. To be clear, this is seriously bad fiscal news.

The Guardian runs an excellent daily business live stream, the link for which is HERE. I highly recommend it, along with the BBC Business live stream, for keeping up to date with current developments.