Tax | Statutory Audit | Accounting
The stronger than expected world economy in the last four months meant the OBR revised up their GDP forecast in the near term,
but further into the future the projections remain unchanged.
Lower borrowing was noted but 'headroom' against the Government’s fiscal targets is virtually unchanged from autumn 2017.
The OBR revised down their productivity and GDP forecasts and, despite lower borrowing this year, increased the forecast for the budget deficit.
The Chancellor increased the prospects of a higher future deficit with higher public spending and a net tax giveaway.
The deficit is likely to be considerably lower this year than the OBR anticipated last November owing to one-off factors and timing effects.
The OBR believe the Chancellor remains on course to meet Government targets for structural borrowing and net debt, but not balance the public finances “at the earliest possible date in the next Parliament”.