The banking group anticipates that policy announcements will include the objective of the ‘balanced’ budget by 2019 being dropped, increased infrastructure spending, measures to improve productivity, efforts to help those ‘just about managing’, a freeze on fuel duty and further progress on raising personal allowances and the 40p tax threshold.
Ruth Lea, economic adviser at Arbuthnot Bank, said: “There will be keen interest in the OBR’s GDP forecasts for this week’s Autumn Statement.
“Though it is expected there will be sizeable downgrades, and the projections for the public finances will look worse than in March, it should be noted the economy could continue to out-perform ‘consensus expectations’.
“Forecasts are, after all, just forecasts. Otherwise, we are likely to see a ‘steady-as-she-goes’ Autumn Statement, which is surely appropriate given the resilience of the economy.”
The Autumn Statement is based on forecasts from the Office for Budget Responsibility for the economy and public finances.
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