Osborne’s Budget provides few reasons to be cheerful

Growth revised down. Unemployment, borrowing and inflation revised up.

Unless you're Jeremy Clarkson, it's hard to see the bright spot in today's Budget. The Office for Budget Responsibility now predicts lower growth, higher inflation, higher unemployment and a slower pace of deficit reduction than it did in June. Every significant economic indicator is going in the wrong direction.

Growth for 2011 has been revised down from 2.1 per cent to 1.7 per cent and growth for 2012 has been downgraded from 2.6 per cent to 2.5 per cent. Public-sector borrowing is now forecast to be £44.5bn higher across this parliament. And, as Will Straw points out, the OBR now predicts that unemployment will be higher than expected every year from now, starting with an increase of 40,000 in 2011 and another rise of 130,000 in 2012.

As expected, George Osborne announced that the personal allowance will be raised from £7,475 to more than £8,105 in April 2012. But this tax cut (worth £120 to all those earning less than £115,000) will be swallowed up by the coalition's "permanent" VAT rise, which will cost the average adult £310, and by the 1 per cent rise in National Insurance.

With an eye to the next quarterly growth figures, it's worth noting that the OBR is now predicting growth of 0.8 per cent for Q1 of this year. The forecasters were badly wrong last time, of course, but it looks like Osborne will avoid a double dip. Yet a recovery that was already set to be slower than those of the 1970s, 1980s and 1990s will now be weaker still. The coalition's premature fiscal retrenchment has condemned Britain to years of anaemic growth.

George Eaton is political editor of the New Statesman.

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FTSE 100 plunges after Theresa May signals hard Brexit ahead

The Prime Minister is to lay out her Brexit plan later today. 

The FTSE 100 and the FTSE 250 plummeted this morning after the Prime Minister signalled Brexit will mean leaving the single market.

Theresa May is expected to rule out "partial membership" or any other kind of "half-in, half-out" deal with the EU in a speech later today.

The FTSE 100, the index of the UK's 100 biggest companies, and the FTSE 250 both fell more than 0.3 per cent immediately after opening. 

The worst performers included the housebuilder Barratt Developments, consumer goods tester Intertek and the mining company BHP.

Stock markets have been buoyant since Brexit, in part because many of Britain's biggest companies are international and benefit from a devalued pound. 

However, while markets fell, the pound crept up against the dollar, to $1.21. 

Critics of the Prime Minister say she is sacrificing the economy to prioritise immigration controls.

TUC general secretary Frances O'Grady warned: "If we leave the single market, working people will end up paying the price. It'd be bad for jobs, for work rights & for our living standards."

According to the Office for National Statistics, inflation rose from 1.2 per cent in November to 1.6 per cent in December. 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.