This year, the transition from winter to spring has hosted more than the usual changes. The uncertainty around Brexit has not been the only topic of discussion.
On the 13th March 2019, Philip Hammond presented this year’s Spring Statement to Parliament. With the primary focus on resolving Brexit, there were few changes to what had already been announced in the 2018 Autumn Budget. In addition to this year’s Spring Statement, the Chancellor announced that a full spending review would be released before the Autumn Budget later this year.
As there was little announced, you may be left wondering what could affect you and your finances over the next few months. We’ve listed an overview of the main points below:
- With the Brexit issue yet unresolved, the proposed spending review is assuming the “deal is agreed over the next few weeks and the uncertainty hanging over our economy is lifted”
- The public finances set aside for a no-deal Brexit have been increased to £26.6bn, despite warnings that this would weaken the economy. This would lead to higher prices for consumers
- The Government announced that they plan to do more to tackle the problem of late payments to small businesses, which is beneficial towards contractors
- Economic growth was originally forecast to be 1.6% in 2019 in the Autumn Budget; this has now been revised to 1.2%.
- Economic growth for 2021, 2022, and 2023 has been re-forecast to be 1.6% each year
- The forecast for borrowing in 2018-19 has also been revised and has been reduced by £3bn from the initial forecast in the 2018 Autumn Budget. Borrowing is also now expected to be lower in all subsequent years to 2023-24
You can also read the full report in our guide here.