Budget shows United Kingdom not serious about erasing budget deficit by mid-2020s

Budget shows United Kingdom not serious about erasing budget deficit by mid-2020s

Prime Minister Theresa May has rejected suggestions that Chancellor Philip Hammond's giveaway Budget was created to pave the way for an early general election.

The OBR expect growth to be resilient across the forecast period improving next year from the 1.3 percent forecast at the Spring Statement to 1.6 percent, then 1.4 percent in 2020 and 2021; 1.5 percent in 2022; and 1.6 percent in 2023.

Hammond unveiled the biggest discretionary loosening of the public finances since the economic crash on Monday, as he tried to make good on Prime Minister Theresa May's promise that years of austerity were ending.

Hammond admitted that at this stage the 2018 UK Budget is a placeholder; and that in the increasingly likely event of a no deal Brexit a new budget will have to be written.

He suggested that a Brexit deal could trigger more tax cuts and increased public service spending.

In particular, Hammond confirmed widely trailed news that the government planned to invest more in rural broadband, by announcing an extra £200 million to help bring "full fibre" broadband to hard-to-reach parts of the country.

Chancellor Philip Hammond has announced a "digital services tax" which will apply only to technology giants that are profitable and generate at least £500 million a year in global revenues, which he hopes will raise £400 million.

That prompted renewed accusations from Labour that ministers are preparing to turn Britain into a low tax, low regulation offshore economy along the lines of Singapore.

"It was not a budget for a student", he said.

Labour leader Jeremy Corbyn then gets the first response, before MPs debate the Budget.

He told Today: "We retain an ambition to balance the budget".

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Johnson said it was hard to measure spending on the NHS but under several measures, the rise was what one is measuring between 2.6 percent a year (an estimate of total health spending increases between 2017-18 and 2023-24) and 3.4 percent a year (daily spending on the NHS over the same period).

Downing Street insisted the spending pledges were fully funded, irrespective of the outcome of Brexit talks.

Mr Bradley said: "I had two main asks of government to support Mansfield and I am pleased that the Chancellor has listened to us on both counts".

Factor in the benefit of the tax-free personal allowance of £12,500 (from next April), and the reality is that to all intents and purposes a basic rate taxpayer's true effective rate of tax on all earned income is 26 per cent - over a quarter of every pound earnt.

Mr Hammond promised an extra £1.7 billion for the implementation of Universal Credit.

In the event of a no-deal break with the European Union, he said he would be forced to tear them up and institute an emergency budget to set the economy on a "new direction".

But the Institute for Fiscal Studies warned that the amended figures from the Office for Budget Responsibility could easily be reversed, forcing the Chancellor to borrow more after "painting himself into a corner".

No 10 said it was working to reach an agreement "as soon as possible". And we'll only get £400m from them.

A total of £160 million has been announced for counter-terrorism police funding for 2019/10.

A £420 million fund will help local highway authorities fix potholes and carry out other maintenance tasks.

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