UK’s Economic & Fiscal Performance

The Chancellor reiterated the growth of the UK economy and the falling deficit, pointing to the following statistics:

• The Office for Budget Responsibility says that since 2010, no advanced economy has grown faster than the UK.
• Growth forecasts are 2.4% for this year, 2.4% for next year and 2.5% for 2017.
• UK deficit will fall this year and will keep falling until 2019/2020 where a surplus is estimated.
• The North has grown quicker than the South and jobs growth in the Midlands been quickest of all regions.
• Productivity is growing slowly but still lags behind other advanced economies.

Key Announcements

In addition to the overview of the UK’s economic and fiscal performance, the Chancellor also made the following announcements:

• Announcements on the business rates review have been delayed until the 2016 Budget.
• Rate relief for small businesses has been extended for another year.
• Confirmation of the localisation of business rates, first announced at the Conservative Party Conference.
• 30% additional reduction to local government budgets.
• Tax credit reductions will be scrapped but £12 billion of welfare savings will still be delivered in full.
• Devolution of corporation tax to Northern Ireland likely to go ahead following agreement between different parties in Stormont.
• No cuts to police budgets and 30% more spending for counter-terrorism.
• £12 billion more spending on capital investment.
• Sustained funding for some cultural amenities with galleries and museums benefiting but the Department for Culture Media and Sport suffering a cut of 20%.
• £6.9 billion investment to build 400,000 affordable homes by the end of this parliament.
• 37% cut to the budget of Department for Transport
• 24% cut to HM Treasury
• 17% cut to the budget of the Department for Business, Innovation and Skills.