All the day’s economic and financial news, as economists react to Philip Hammond’s spring statement
The Resolution Foundation is hot off the blocks this morning, with its full analysis of Philip Hammond’s spring statement.
And the verdict isn’t great -- the think tank warns that the Chancellor won’t eliminate the deficit unless the economic forecasts improve, or he raises taxes.
On incomes, the better near-term outlook means the squeeze that had been projected in November now looks a little less tight. But the final destination is little changed pic.twitter.com/lR0mOw6tkn
With the elimination of the current deficit and debt falling next year, Britain is set to pass two major milestones on its long austerity journey since the financial crisis. But the end of the tunnel is still a decade away, and significant obstacles remain before the final destination is reached.
“Steering past these obstacles will require the Chancellor to make some tough choices that he avoided setting out yesterday lest he spoil the upbeat mood. Delivering significant reductions in debt while softening currently planned spending cuts to come will require either tax rises or for Britain to heed the Chancellor’s call to ‘beat the forecasts’. Planning for the former, while hoping for the latter might be a sensible approach for the years ahead.
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
“If, in the autumn, the public finances continue to reflect the improvements that today’s report hints at, then in accordance with our balanced approach ... I would have the capacity to enable further increases in public spending and investment in the years ahead.”.
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