2018 Autumn Budget - the economic picture

29 Oct 2018

Within his Autumn Budget speech, Chancellor Philip Hammond reported that 'the era of austerity is finally coming to an end', unveiling higher growth forecasts and lower-than-anticipated borrowing.

In its report prepared for the Budget, the Office for Budget Responsibility (OBR) revised its growth forecasts for the UK economy up from 1.3% to 1.6% for 2019; to 1.4% in 2020 and 2021; to 1.5% in 2022; and to 1.6% in 2023.

Meanwhile, government borrowing in 2018 is set to be £11.6 billion lower than originally forecast at this year's Spring Statement, the OBR revealed.

However, Mr Hammond also recently warned that an emergency Budget will be required if the government fails to negotiate a Brexit deal with the EU.

The Chancellor stated that, in the event of no deal, he will be required to alter his economic plan, and has therefore chosen to 'hold back some fiscal headroom'.

All spending plans outlined in the Budget will take effect, 'regardless of Brexit', Downing Street confirmed.

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