The Autumn Statement is based on the latest forecasts from the Office for Budget Responsibility regarding the economy and public finances amid the results of the British referendum on the exit from the European Union.
On October 26, the Resolution Foundation think tank warned Hammond of an 84-billion-pound ($102 billion) black hole in public finances over the next five years, increasing debt and inflation rates, slower wage growth, falling value of the pound and rising unemployment.
The following day, the Treasury`s internal briefing document published by mistake on the government’s website revealed that the UK government would be unable to implement its deficit reduction plan due to $2.8-billion deficit and $855-million EU bill that London has to pay after the Brexit referendum. On November 8, the Institute for Fiscal Studies issues a report, saying that slower economic growth after the Brexit vote would force the British authorities to borrow 25 billion pounds ($31 billion) more than it was forecast by Office for Budget Responsibility in March.
UK Chancellor to reveal gov`t economic plans amid Brexit
23 November 2016
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UK Chancellor of the Exchequer Philip Hammond will present to the Parliament his first Autumn Statement that is expected to reveal the government`s economic plans for 2017 on Wednesday.
