Budget 2017: Britain’s economy set to continue to grow after Brexit – but at a slower rate
Forecasts for this year's growth are down from 2 per cent in March this year, to 1.5 per cent
BRITAIN's economy will continue to grow over the next five years - but at a slower rate than previously thought.
Philip Hammond announced today that officials have decided that our economic growth forecasts have been cut.
The Office for Budget Responsibility said that the economy would grow 1.5 per cent this year, which is down from 2 per cent back in March.
And it will continue to slow for the next few years - but will pick up again in 2020.
It will mean less money for the Treasury - and less cash in people's pockets.
Growth of the UK economy has been revised down
Lower growth will mean lower tax receipts for the Treasury
March:
2017: 2%
2018: 1.6%
2019: 1.7%
2020: 1.9%
2021: 2%
2022: -
November
2017: 1.5%
2018: 1.4%
2019: 1.3%
2020: 1.3%
2021: 1.5%
2022: 1.6%
But in brighter news for Brits, inflation will reach its highest point of 3 per cent this year, before falling, he said.
Financial experts said that debt will also peak - and will gradually fall.
Mr Hammond said it was a "turning point in our recovery".
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He used today's Budget speech to hit out at the Labour party for wanting to RAISE our debt further with more borrowing and spending.
"Apparently not everyone shares the view that falling debt is good news," he said today.
"The party opposite are suggesting increasing the debt by £500bn... and waiting an extra £7billion a year on debt interest".
And he joked: "If they carry on like that, there will be even more people like Kezia Dugdale saying 'I'm Labour, Get Me Out Of Here!"
Budget 2017: Key points at a glance
CHANCELLOR Philip Hammond has delivered his second Budget as Chancellor. Here are the key points:
- Stamp Duty: Stamp duty to be abolished immediately for first-time buyers purchasing properties worth up to £300,000.
- Living Wage: The National Living Wage will rise from £7.50 to £7.83 for those aged 25 and over from April.
- Diesel cars: New £500 diesel road tax from April next year.
- Booze: Duty on beer, wine, spirits and most ciders has been frozen.
- Plastic Plan: Takeaway boxes and bubble wrap are to be taxed in an attempt to tackle the growing usage of single-use plastics.
- Crackdown on tech giants: Tech giants like Apple, Google and Spotify may have to pay tax on royalty payments.
- New railcard for under 30s: Hammond confirmed a new railcard for 16-30 year-olds which will give a third off fares.