Placeholder Image

Subtitles section Play video

  • Mr. Speaker, I am pleased to report today to the House

  • on a UK economy that has grown in every year since 2010.

  • These new figures from the Office

  • for Budget Responsibility are the best indication

  • we have of the state of the UK economy.

  • The headline is that over the next five years,

  • the UK economy will be a little bit sluggish still.

  • And the public finances will be improving, but improving

  • slowly.

  • Looking at the growth forecast, the figures for last year,

  • 2017, have been upgraded to 1.7% growth.

  • We knew that, because the data was already out.

  • For this year, 2018, again, a very small increase, up to 1.5%

  • from 1.4%.

  • Then there's no change in 2019, 2020, and very small downgrades

  • for 2021 and 2022.

  • So overall, the amount of growth overall

  • over the five-year period, about the same as in November.

  • Taxes have been coming into the Exchequer faster than expected.

  • And the OBR confirmed that the Chancellor

  • was going to have a windfall this year of about 5

  • billion pounds.

  • That's 5 billion pounds lower borrowing,

  • about 45 billion pounds, compared with the 50 billion

  • it expected as recently as the November budget.

  • This means that the level of debt in the economy

  • is going to be falling slowly as a share of national income

  • from this year onwards, really tiny falls at first,

  • and then slightly bigger falls over the next few years.

  • With about 5 billion pounds to play with,

  • if these figures are confirmed in the budget in November,

  • then Philip Hammond, the Chancellor

  • will have some scope to probably increase public spending.

  • It's not a big increase in public spending.

  • 5 billion pounds is tiny compared with the overall size

  • of the economy.

  • But it might just give him enough cash

  • in the autumn to stop a crisis in the NHS over the winter

  • or to tide things over for social care,

  • just a little bit of money to play with.

Mr. Speaker, I am pleased to report today to the House

Subtitles and vocabulary

Operation of videos Adjust the video here to display the subtitles

B1 US FinancialTimes economy growth november budget hammond

Growth up, debt down–what next for Philip Hammond

  • 40 5
    Kate Chang posted on 2018/03/26
Video vocabulary