The first major economic statement since the EU referendum focused on measures to “prepare our economy to be resilient as we exit the EU”. Unsurprisingly, the Ofice for Budget Responsibility (OBR) forecasts for growth
Unsurprisingly, the Office for Budget Responsibility (OBR) forecasts for growth have changed since the last figures were published in March. The prediction for 2016 is 2.1%, slightly higher than the 2% forecast in March 2016.
However, in 2017 growth is expected to slow to 1.4%, lower than the 2.2% predicted at the Budget in March.
Aside from economics, chancellor Philip Hammond’s first Autumn Statement was light on new announcements.
There was a focus on investment in infrastructure and innovation with money allocated for R&D, homebuilding and transport.
He also confirmed various measures announced at Budget 2016 including:
- an £11,500 personal allowance from April 2017
- corporation tax will fall to 17% by 2020.
The main surprise was that this was the final Autumn Statement. Following the spring 2017 Budget, the Budget will move to the autumn. A statement responding to OBR forecasts will follow in the spring of 2018 but the chancellor was keen to stress that it will not be a “major fiscal event”.
We have created a report that summarises the announcements made by chancellor Philip Hammond during the 2016 Autumn Statement on 23 November 2016.