The Spring Statement 2018
Phillip Hammond has commented that he was feeling positively ‘Tiggerlike’ after stating that the economy has grown for five consecutive years. GDP growth is to be forecasted at 1.5% in 2018 which is a rise from the previous 1.4%. Borrowing has fallen three quarters since 2010, with OBR reports stating that for every £1 borrowed, we will spend £18.
The downside, however, is that debt is still too high, averaging at roughly £65,000 per household, heavily burdening future generations with debt interest payments exceeding £50 billion a year. No changes to tax have been announced in the Spring Statement, however a series of consultations have indicated at possible future changes to the taxation system.