On 23rd November, Philip Hammond, the new Chancellor of the Exchequer, delivered his first Autumn Statement to Parliament. Hammond celebrated an economy that has ‘bounced back from the depths of recession’, promised to ‘prepare our economy to be resilient as we exit the EU’, and detailed important changes to taxation.

Key Numbers

• Britain has the fastest growing major economy in 2016, but the Office for Budget Responsibility (OBR) tempered that forecast with a reminder that uncertainty due to Brexit continues to constrain growth. This uncertainty is reflected in the OBR’s updated growth forecasts: GDP will grow 2.1 per cent in 2016, slow to 1.4 per cent in 2017, and recover to 1.7 per cent in 2018, and 2.1 per cent in 2019 and 2020.
• This higher uncertainty lead to weaker OBR business investment forecasts—a 2.2 per cent fall in 2016 and a 0.3 per cent fall in 2017. The forecasts return to the positive with 4.1 per cent growth in 2018, and 5.3 per cent growth in 2019.
• Owing to Brexit uncertainty and slower growth forecasts, the government has abandoned its goal to deliver a surplus (more tax raised than spent) by 2019. It hopes to see public finances ‘return to balance as soon as practicable’.

For more information on changes to the National Living Wage, the National Minimum Wage and highlights for businesses and individuals, continue reading below:

News Brief – 2016 Autumn Statement Highlights