Chancellor Philip Hammond confirmed the UK economy is growing and borrowing is down when delivering his Spring Statement on Tuesday 13 March 2018.
Responding to economic forecasts made by the Office for Budget Responsibility (OBR), Hammond said GDP is expected to grow 1.5% in 2018 – up 0.1% on November 2017’s forecast.
However, the OBR decided to retain its growth forecast of 1.3% for 2019 and 2020 which was initially announced in Autumn Budget 2017.
Hammond reiterated a term he used on the Andrew Marr Show on Sunday 11 March 2018, saying “there was light at the end of the tunnel” for the UK’s public finances.
Borrowing fell to £45.2 billion, £4.7 billion lower than the OBR’s forecast in November 2017, while any further borrowing will be to fund capital investment only.
In wider context, borrowing declined by three-quarters since 2010 when the UK borrowed £1 in every £4 spent – but the OBR expects this to fall to £1 in every £18 in 2018.
Debt is expected to start falling as a share of GDP in 2018/19, according to the OBR.
A full Spring Statement report is available on our website.