Budget Shows Worst Growth in Decades

Chancellor Philip Hammond announced plans to inject £25 billion into the economy, in response to reports showing that the UK is enduring the worst growth in decades. The Chancellor said that the sacrifices which have been made through years of austerity are now allowing him some room to offset the fresh economic difficulties.

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shareprices.com - Wednesday, November 22, 2017

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The country is facing its worst period of growth, economically, in 50 years, as the country is being hamstrung by reduced productivity and fears surrounding Brexit. Weak figures that were released alongside the budget caused the chancellor to announce the cash injection, which will see money being pushed towards housebuilidng, the NHS and the technology sector.

The extra cash will not be enough to save all government departments from cuts, however. Mr Hamond is still struggling to keep public spending to manageable levels. He announced that there had been progress made towards reducing the net debt, and abolishing the deficit - but it could take until 2031 for the country to achieve a budget surplus.

Forecasts from the office for budget responsibility indicate that GDP could grow by 1.5 percent over the full duration of this year - down from the 2 percent that was predicted back in March. The growth could fall to 1.4 percent next year, and 1.3 percent in 2019, not starting to recover until 2021, and not exceeding 1.5 percent until 2022, due in part to the anticipated cuts to public spending as well as the uncertainty surrounding brexit.

 

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