Spring Statement: Hammond promises 'deal dividend'

Category : UK News
Updated On : March 13, 2019 10:37 PM
By Indian Times Daily

The chancellor has pledged to spend a £26.6bn Brexit war chest to boost the economy, if MPs vote to leave the European Union with a deal. Philip Hammond vowed to free up more money to cut taxes and spend on public services in a "deal dividend". However, he said these spending plans were based on a smooth Brexit.

Mr Hammond used his Spring Statement to warn that a disorderly Brexit would deal a "significant" blow to economic activity in the short term. He said the decision by MPs to reject Theresa May's Brexit deal for a second time had left a "a cloud of uncertainty hanging over our economy".

The latest figures from the Office for Budget Responsibility (OBR) forecast that the UK economy will grow at the slowest pace since the financial crisis this year. The OBR cut its 2019 growth forecast to 1.2%, the weakest growth rate since 2009.

That is a significant cut from the 1.6% expansion predicted by the government's economic watchdog last October. After that growth is expected to rebound. Mr Hammond said the economy had "defied expectations" as wages were expected to keep growing at rates of above 3% over the next five years.

Please enter valid email!

Show Please enter password!

Forgot your password?

Please enter name!

Please enter name!

Please enter valid email!

Show At least 6 characters

Lost your password? Please enter your email address. You will receive a link to create a new password.

Please enter valid email!

Back to log-in

Close