Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and 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 Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Play Wealth managers reveal the best investment ideas of the year

Wealth managers reveal the best investment ideas of the year

From robotics to impact investing, wealth managers share the best ideas they have heard this year.

Play Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Sophie Earnshaw talks through what Xi Jinping's 'new era' means for investors. and why Chinese tech offers some of best growth stocks in the world.

Read More
Your Business: Cover Star Club

Profile: JM Finn on why the future is with financial planners

Profile: JM Finn on why the future is with financial planners

There is a lot of work on pension consolidation and Sipps have been a big driver there, says JM Finn chief executive

Wealth Manager on Twitter