Image Courtesy of Patrícia Almeida on Flickr

Spring Statement

The Spring Statement is one of two financial statements the Chancellor makes each year to Parliament, the other being the Autumn Budget. The Spring Statement provides an update on the Office for Budget Responsibility’s economic forecasts but is not intended to include any major tax and spending announcements.

The Chancellor made the Statement today at 12.45pm under ’a cloud of uncertainty’ following the failure of the Government to get its Brexit deal passed by the Commons.

The revised forecasts are:

Growth

  • 2019: 1.2% compared to 1.6% in last October’s budget
  • 2020: 1.4% compared with 1.4%
  • 2021: 1.6% compared with 1.4%
  • 2022: 1.6% compared with 1.5%
  • 2023: 1.6% compared with 1.6%

 

Borrowing

  • 2018/2019: £22.5 billion compared to £25.5 billion in last October’s budget.
  • 2019/2020: £29.3 billion compared with £31.8 billion
  • 2020/2021: £21.2 billion compared with £26.7 billion
  • 2021/2022: £17.6 billion compared with £23.8 billion
  • 2022/2023: £14.4 billion compared with £20.8 billion
  • 2023/2024: £13.5 billion compared with £19.8 billion

 

Public debt

  • 2018/2019: 83.3% of GDP compared to 83.7% in the Budget
  • 2019/2020: 82.2% compared with 82.8%
  • 2020/2021: 79.0% compared with 79.7%
  • 2021/2022: 74.9% compared with 75.7%
  • 2022/2023: 74.0% compared with 75.0%
  • 2023/2024: 73.0% compared with 74.1%

 

Spending review

  • Three-year review to be launched by the summer and concluded by the Autumn Budget. Focus to be on raising productivity.

 

Technology

  • Competition and Markets Authority to undertake a review of the digital advertising market.

 

Housing

  • £3bn Affordable Homes Guarantee scheme, to support delivery of around 30,000 affordable homes.
  • £717m from the Housing Infrastructure Fund to provide new homes on sites in West London, Cheshire, Didcot and Cambridge.

 

Other announcements

  • Free sanitary products to be available in schools from the next school year.
  • PhD level roles to be removed from any visa caps.
  • Review of the Low Pay Commission’s remit for recommendations on the National Living Wage and National Minimum Wage.
  • Call for evidence on the Business Energy Efficiency Scheme to allow small businesses to cut their carbon emissions and their energy bills.

 

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