Yael Selfin, Chief Economist at KPMG, offers her view of the Chancellor's speech.
Reacting to the Chancellor’s Spring Statement today, Yael Selfin, Chief Economist at KPMG said:
“With the second half of last year showing stronger momentum for the UK economy, and outcomes for public finances also more positive than the OBR had pencilled in, some upward revisions by the OBR were always on the cards ahead of the Spring Statement.
“In the event, the OBR chose to make only a very minor increase to this year’s growth forecast, preferring instead to reserve judgment before taking the rise in productivity over the second half of 2017 as an indication of a more lasting change. OBR forecasts for public finances were more positive, with debt now expected to fall to 77.9% of GDP by 2022-23.
“Nevertheless, the Chancellor was in a positive mood, placing his faith in the UK economy, and laying the ground for further investment to improve productivity over the coming years. He also recognised that helping management improve the performance of the companies they lead could make a big difference. Similarly, simplifying incentives, and providing a stable business environment can go a long way to encourage businesses to invest more, as well as make it easier for business to select and implement the type of investment that will boost performance most. We will hopefully hear more on that in the November Budget.”
Notes to Editors
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