UK Budget: Weaker economy puts the squeeze on finances - TDS
Analysts at TDS explain that the UK’s Autumn Budget was uneventful as predicted, with the biggest headline-grabbing policy (a cut in stamp duty for first-time buyers) likely to have little effect on the economy or the government’s finances.
“Most notably, yesterday’s OBR forecasts cut UK growth forecasts considerably, predicting sub-2% growth through 2022. The government’s deficits have subsequently been revised up significantly in FY2019/20 and beyond, as has the debt-to-GDP ratio.”
“Gilt issuance for FY 17/18 saw only a marginal increase by £0.9bn. Overall, the budget was in line with expectations with moves in rates space relatively muted.”