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Daniel English

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Email: daniel@contadoraccountancy.co.uk

Louise Rogers

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Email: louise@contadoraccountancy.co.uk

John Matthews

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Email: john@contadoraccountancy.co.uk

Contador (associated with Louise Rogers Accountancy)

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The Spring Statement

March 15, 2019

Amongst the flurry of Brexit voting there was a budget statement which achieved very little publicity. Here we share the details as reported on the .gov website.

 

 

 

Economy

The government’s efforts to build a stronger, fairer economy are paying off. The economy remains resilient, and is forecast to continue growing:

  • there have been nine consecutive years of growth, and the Office for Budget Responsibility has forecast further growth every year for the next 5 years

  • since 2010, the economy has grown faster than France, Italy and Japan

  • the OBR expects inflation to stay close to or on target for the duration of the forecast

  • business investment is forecast to start growing again from next year, once businesses have the certainty they need to invest

And employment continues to break records
  • since 2010 there are over 3.5 million more people in work, and the OBR forecast employment will increase by a further 600,000 by 2023

  • the unemployment rate of 4.0% is the lowest rate since 1975. The OBR forecast it will remain near historic lows over the next five years

  • wages are increasing at their fastest pace in over a decade, and are forecast to continue growing faster than inflation, which means more money in people’s pockets

  • since 2010, there are a million fewer workless households and every region and nation of the UK has higher employment and lower unemployment

Public finances

Thanks to the government’s fiscal responsibility, and the hard work of the British public, the public finances have reached a turning point:

  • borrowing has already been reduced by four-fifths since 2009-10 and debt has begun its first sustained fall in a generation

  • debt fell last year, and is forecast to fall continuously, to 73.0% of GDP in 2023-24, compared to the peak of 85.1% in 2016-17

  • the public finances have continued to improve since the autumn. Borrowing and debt are lower in every year of the Spring Statement 2019 forecast than at Budget 2018

  • the government is focused on keeping debt falling so as to not burden the next generation. The government is taking a balanced approach, reducing borrowing and debt, while supporting public services, investing in the economy and infrastructure, and keeping taxes low

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