Budget 2017: The CPS Verdict

Budget 2017: The CPS Verdict

  • The Budget was dominated by the OBR’s slashing of productivity forecasts, which wiped 3 percentage points off predicted economic growth over the next five years.
  • As a result, Britain will borrow more and is further away from achieving a budget surplus.
  • Given these constraints, the Chancellor could have done a lot worse. In particular, the changes to Universal Credit were necessary, and the help on business rates and freezing of the VAT threshold will help firms of all sizes.
  • Measures on housing were deeply disappointing, however. No concrete steps on planning were announced, and abolishing stamp duty for first-time buyers could actually make things worse.
  • Hammond should be commended for not going on a spending splurge – but this Budget will do little to solve the UK’s productivity woes.

Daniel Mahoney - Thursday, 23rd November, 2017