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Chancellor has taken a gamble with the public finances, says thinktank

31 Octobre 2018

- Raises revenue projections, cuts borrowing forecasts.

And with each party in the House of Commons seeking to gain the high ground with millions of frustrated would-be purchasers - and voters - conditions are only likely to get tougher for proprietors in the years ahead.

Microsoft's United Kingdom director of corporate, external and legal affairs, Hugh Milward, said the company was "digesting what it was that the chancellor announced yesterday", but agreed with Google that "the most important thing is how this influences what the OECD is thinking and how the OECD is going to influence what the chancellor decides to do".

Britain's economy is on course to expand by around 1.3% for the 2018 year, a much lesser rate than the 1.7% seen in 2017, due to a steep slowdown seen in the first quarter.

"In the near term, it is worth emphasising that this forecast assumes a relatively smooth exit from the European Union next year", says the OBR.

Whiteman highlighted that although the OBR forecast said the government's debt will fall to 80% of GDP in 2022-23, without any changes in policy it is also predicted to rise to 282.8% of GDP in 2067-68.

This is an improvement on the 1.3% projection issued back in March.

From April 2020 Air Passenger Duty will be indexed in line with inflation, but there will be no change in the duty rate for short-haul flights.

The OBR's economic forecasts assume that a deal will be struck and that the UK will have a two year transition period during which the UK-EU trading relationship "will remain as it is now". The OBR's forecasts suggest that a chaotic Brexit could plunge the United Kingdom into a swift recession.

The budget has been delivered by Chancellor Philip Hammond and it is the last one before the United Kingdom leaves the EU.

"It is vital the strategic importance of the farming industry that provides the raw ingredients for the UK's largest manufacturing sector, food and drink, which generates £113 billion for the economy, is properly recognised and valued by the Government".

With Brexit less than six months away, no one was expecting fireworks from this budget and in terms of tax measures this seems to be the case.

A recent report by the Business, Energy and Industrial Strategy Committee, a group of Labour and Conservative MPs, criticised the Government's current "Road to Zero" strategy, which aims to see only sales of new "effectively zero emissions" vehicles by 2040.

"Unemployment fell to 4.0 per cent of the labour force in the second quarter, continuing the downward trend since late 2011".

"This means we will struggle on for another year". They urged ministers "not to adopt a measure which would cause material harm to economic growth and to innovation, investment and employment across Europe". Such contracts have been slammed by the Public Accounts Committee for being inflexible, and the Office for Budget Responsibility has identified private finance initiatives as a fiscal risk to the government.

The personal allowance, which is the minimum income someone can earn before paying tax, will rise to £12,500 from £11,850.

Opponents would say "yikes, our economy that is dependent on global businesses based here for free frictionless access to the world's biggest market, the EU's, must surely slow down as the friction and costs rise of trading with that market". Total day-to-day spending in the public services remains 8% lower than in 2009/10 and will still not have reached that level by 2023/24.

"You are painting a picture here that is created to show that I'm abandoning fiscal rectitude", he said.

Chancellor has taken a gamble with the public finances, says thinktank