Budget 2017 - PwC comments on the economic impact
Published at 13:58 PM on 08 March 2017
Safety first Budget as OBR projects little change in medium term picture on growth and borrowing, says John Hawksworth, PwC chief economist:
“The Chancellor delivered a 'safety first' Budget with some well targeted giveaways on social care, vocational training and business rates relief that were broadly offset by tax rises for the self-employed and other measures.
“The Chancellor's caution is understandable given that, despite better than expected short term numbers, the OBR made little change to its medium-term projections for either economic growth or public borrowing. The timing of the adverse economic and fiscal impact of Brexit has been pushed back a bit, but the eventual impact in 2021 remains more or less the same as in the Autumn Statement in November.
“Facing many economic and political uncertainties around Brexit and other geopolitical events, it was prudent for the Chancellor to protect the £26 billion headroom he left himself in meeting the new fiscal target he set out in the Autumn Statement. But, given the OBR's view that the underlying economic position has not changed materially since November, the Chancellor was not able to add to this headroom despite his cautious overall Budget judgement.”
For full Budget coverage please visit pwc.co.uk/budget
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