Hammond talks up United Kingdom economy despite Brexit 'cloud'

Hammond talks up UK economy despite Brexit 'cloud'

Hammond talks up UK economy despite Brexit 'cloud'

Mr Johnson's analysis said that although Philip Hammond's Spring Statement was not expected to be a big fiscal event, "by once again declining to set totals for the forthcoming spending review, [Mr Hammond] deferred making some of the biggest non-Brexit decisions of the parliament".

His remarks follow the chancellor's Spring Statement on Wednesday.

He said Parliament's rejection of Prime Minister (PM) Theresa May's Brexit deal had created a "cloud of uncertainty" and crashing out would cause "significant disruption".

The Bank has also slashed this year's growth forecast to 1.2% - the lowest since 2009, when the economy contracted by 4.2% at the height of the recession following the financial crisis.

But this depends on a Brexit deal being completed in the next few weeks and the "uncertainty that is hanging over our economy lifted".

The OBR also said on Wednesday that the pay of the top 0.1% has been rising considerably faster than the average over the past year or more, which the IFS said was not true for most of the period after 2010. "And when we do, the British people will fully expect us to fire-up our economic plan, to seize the opportunities as confidence in our economy returns".

"This is up from £15.4 billion in October, as the fiscal costs of the temporary near-term cyclical weakness of the economy have been swamped by the fiscal gains from higher income tax and lower debt interest spending".

The Chancellor said there was "good news" on the public finances, with borrowing forecast to reach £13.5bn in 2023/24, its lowest level in 22 years.

But the Northern Ireland Chamber of Commerce and Industry said the statement had "little to offer, especially with regards to Northern Ireland". Hammond nevertheless reaffirmed the government's commitment to provide the country with a "deal dividend".

"NI Chamber is fully supportive of the Derry/Londonderry City Deal and we hope this gets over the line soon".

Britain will avoid imposing tariffs on most imported goods in the event of a no-deal Brexit, though officials said prices of key European Union products including beef, cheese and cars will rise.

"This is extremely concerning, especially for Northern Ireland, which already has productivity levels amongst the worst in Europe and the lowest across the United Kingdom regions". "The idea that some readily available fix to avoid the consequences of a no-deal Brexit is just wrong". The Chancellor said company audit committees would be required to review payment practices, and report on them in annual accounts.