Economic prognosis concerning UK: downturn in government borrowing

Economic prognosis concerning UK: downturn in government borrowing

While delivering his speech about forthcoming spring budget Philip Hammond stated that he anticipates come down in state loan.

Since March 2014 it has become the first time for a chancellor to declare about downturn in government borrowing. Previously it has been looked for increase, but in reality we can meet with another scenario.

Analytic center has told Hammond about uncertainty in the economic prognosis and called him to use his budget to make the economy less dependent on personal consumption.

Principal Economist of Resolution Foundation Matt Wittaker has stated the following idea about the events that Philip Hammond should devote great care not only to public finance but also to some other significant structural issues in UK“.

Due to the previous year’s upturn supported by personal spending, the outlook of deceleration in personal income growth in the years to come cannot make us feel certain of our sustainability.

OBR made known that during forthcoming years the leadership will have to borrow additionally £122bn, unlike it has been anticipated before Brexit vote. The Resolution Foundation expects and the OBR hopes that facility prognosis will be cut by a cumulative £29bn between 2015-2016 and 2020-2021.

It is looked-for that there to come changes for the better in the near term; there is a consensus opinion among financial experts that economy will slow over in forthcoming years in connection with incertitude around Britain’s future commercial relations incur losses because of pound’s post-referendum weakening.

Weakening of pound can result in advance in price for such inwards as fuel, some food staples and metals.

The chancellor is going to reconsider planned tax cuts and address Britain’s regional, generational and income divides.

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