Post Brexit on 24th November
The Chancellor Philip Hammond gives his first autumn statement on 24th November and has a tough challenge on his hands post-Brexit. His performance was subdued, and clearly, a show is his skill as a former accountant in making a statement with no real razzmatazz.
Announcing his measures to get the UK economy moving on the path to growth, the level of national debt and the uncertainty around Britain’s negotiation to quit the EU is made it difficult to bring good news to the general public.
Predictions that he is borrowing billions more have been confirmed and with rising inflation what will that mean for workers, families, business both big and small and pensioners.
The Chancellor announced a £1.1 billion further investment in local transport networks in England and £22 million to reduce high traffic points.
With a further £23 billion being spent on infrastructure and innovation over the next five years as part of the National Productivity Investment Fund, it is clear that borrowing is the primary element of this budget statement.
Other prominent figures to review and announced, which essentially means that the Brexit fall-out is having a harsher impact on the economy than previously thought and worse than expected.
Growth is forecast at 1.4 percent in 2017, down from 2.2 percent before the EU referendum
National debt will peak at a national record of 90.2 per cent of GDP in 2017/18
Government borrowing will hit £69.2 billion in 2016 and £59billion in 2017, far exceeding what was expected and leaving the future uncertain.
Mr Hammond further announced the following:
National Living Wage increase to £7.50 from April 2017
Confirming Corporation Tax will be cut to 17% by 2020
400 million extra to Wales
It means that in work support is still looking bleak for working families, even with the proposed crackdown on pension scams and cold calling did not lift the mood.
The Shadow Chancellor John MacDonnell was not holding back in his response and said
“he has significantly failed, the verdict could not be clearer. The so-called long-term economic plan has failed”,
he further went on to say
“The figures speak for themselves. Growth down, wage growth down, business investment down, and their deficit target failed. The debt target failed. The welfare cap failed”
The Chancellor will now need to see how this impacts on the financial markets and economy growth leading up to Christmas.