Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Autumn Statement: OBR cuts growth to -0.1% in 2012; 1.2% in 2013

Autumn Statement: OBR cuts growth to -0.1% in 2012; 1.2% in 2013

Growth in the UK will run at around zero in 2012 and at 1.2% in 2013, the Office for Budget Responsibility (OBR) said.

Despite the Office for National Statistics (ONS) maintaining its 1% growth estimate for 2012's third quarter, chancellor George Osborne has continued to come under pressure to generate growth and as part of today's address to parliament, the OBR reduced its growth estimate for 2012 from about 0.8% to roughly -0.1%, and for 2013 from 2% to 1.2%.  In 2014 an estimate of 2% was given.

Ahead of the Autumn Statement, Osborne was set to extend his austerity measures, originally due to end in 2015 as the deficit came down, through to 2018.

Osborne was expected to push for growth via construction and infrastructure builds, and on Tuesday he announced a £5 billion measure to create new schools, roads and science projects, however this package is to be funded by cuts at Whitehall.

A reduction in the deficit was also meant to come via cuts to NHS spending, but a health service spokesperson rebutted the speculation.

Speaking to parliament Osborne said despite the gloom 'Britain is on the right track', with the deficit down by a quarter in two years.

The OBR in part backed this claim and said the deficit was falling, but warned the shock of the financial crisis would linger.  GDP actually shrank by 6.3% in 2008/09, it said.

Osborne said the structural deficit in the UK had been cut by more than any other country and that he would stick with his recovery plan, though all initiatives would be balance sheet neutral.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter