Hetal Mehta, Senior European Economist at Legal & General Investment Management: “The Chancellor of the Exchequer has long been keen to have only one major fiscal event a year and today’s Spring Statement was just that – a statement of the latest borrowing and growth projections without any fanfare, or new policy announcements. And yet, he had a small Spring in his step (excuse the pun!)
“After significant downgrades to growth and upward revisions to borrowing requirements just in November, the Office for Budget Responsibility has now revised up growth (for the near term) and taken down the borrowing forecasts over the next 5 years.
“That said we don’t expect Hammond to go on a spending splurge in the Autumn Budget. He will likely save the extra room for manoeuvre ahead of the next election and to cushion any downside risks emerging from the UK’s departure from the EU.”