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U.K. Predicts Worse Growth and Earmarks Cash for Hard Brexit

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    U.K. Predicts Worse Growth and Earmarks Cash for Hard Brexit

    Looks like the writing is on the wall. What's the bet this triggers the housing crash?

    Graduates flee now to well paying jobs in Europe while you still can.

    More stories by Thomas Penny22 November 2017, 14:46 CET
    Prime Minister Theresa May’s under-fire government acknowledged the U.K. economic outlook is deteriorating and unexpectedly set aside an extra 3 billion pounds ($4 billion) to prepare for all Brexit outcomes.

    Opening his Budget speech in Parliament on Wednesday, Chancellor of the Exchequer Philip Hammond said the Office for Budget Responsibility now sees 2018 economic growth of 1.4 percent compared with the 1.6 percent predicted in March as a result of revised productivity data and headwinds caused by Britain’s vote to quit the European Union. Growth is predicted to be lower than forecast in every year through 2021.

    The announcement of Brexit funding shows he’s relented to demands from more pro-Brexit factions of the cabinet to set aside money so the U.K. can walk away from divorce talks with the European Union. It’s also noteworthy that back in March 2016 -- prior to the referendum -- the OBR predicted much healthier growth of 2.2 percent in 2017 and 2.1 percent in 2018.

    May’s government has been rocked by resignations, rebellions and sluggish progress in Brexit negotiations, and Hammond sought to strike an optimistic tone while limiting spending to fit the new economic reality.

    “While we work to achieve this deep and special partnership, we are determined to ensure that the country is prepared for every possible outcome,” Hammond said.

    “We have already invested almost 700 million pounds in Brexit preparations and today I am setting aside over the next two years another 3 billion pounds and I stand ready to allocate further sums if and when needed.”

    The timing of the Budget coincides with a particularly delicate time in Brexit negotiations -- meaning there is even less space for mishaps. May is getting ready to make a better offer on what the U.K. will pay in order to leave the bloc with both sides engaged in high-stakes diplomacy to try to get a breakthrough at a crunch December summit in Brussels.

    Even though Hammond’s ability to offer populist giveaways to win back support lost in June’s catastrophic election is limited, he said there will be an extra 3.75 billion pounds for the National Health Service next year and that he would fund any agreement by Health Secretary Jeremy Hunt to increase nurses’ pay.

    What Our Economists Say....


    “Hammond has described the Budget as one that prepares the country for every possible outcome. In reality, a bad Brexit could easily bust the fiscal rules. If negotiations go well, Hammond’s rainy day fund may become a reserve for pre-election giveaways...”

    -- Jamie Murray and Dan Hanson, Bloomberg Economics.

    source: https://www.bloomberg.com/news/artic...rexit-outcomes
    "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

    #2
    Please let there be a housing crash.

    Comment


      #3
      Originally posted by scooterscot View Post
      Looks like the writing is on the wall. What's the bet this triggers the housing crash?

      Graduates flee now to well paying jobs in Europe while you still can.



      source: https://www.bloomberg.com/news/artic...rexit-outcomes
      If it does precipitate a housing crash, shouldn't the graduates stay here to get on the housing ladder easier?
      Originally posted by Old Greg
      I admit I'm just a lazy, lying cretinous hypocrite and must be going deaf
      ♕Keep calm & carry on♕

      Comment


        #4
        Originally posted by Bean View Post
        If it does precipitate a housing crash, shouldn't the graduates stay here to get on the housing ladder easier?
        How will they get a mortgage when leading will get harder and there will be less jobs? You do realise we don't get housing crashes when the economy is buoyant don't you? And you also realise that housing, in real terms, is more affordable already today than it was pre recession 2007? House prices haven't recovered, in real terms, to what they were in 2007 so stop whinging about house prices you numpty.
        I am what I drink, and I'm a bitter man

        Comment


          #5
          Originally posted by Whorty View Post
          How will they get a mortgage when leading will get harder and there will be less jobs? You do realise we don't get housing crashes when the economy is buoyant don't you? And you also realise that housing, in real terms, is more affordable already today than it was pre recession 2007? House prices haven't recovered, in real terms, to what they were in 2007 so stop whinging about house prices you numpty.
          How was my question in any way a whinge about house prices?
          You numpty
          Originally posted by Old Greg
          I admit I'm just a lazy, lying cretinous hypocrite and must be going deaf
          ♕Keep calm & carry on♕

          Comment

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