The budget's effect on growth? Zero. Zip. Zilch. Nada.

The OBR confirms: this budget is tinkering around the edges.

The Chancellor closed his budget declaring that it was:

A Budget for a Britain that wants to be prosperous, solvent and free.

In actual fact, the budget is unlikely to do any of that. In fact, on the macro-scale, it will do precisely nothing. And that's not my estimate, that's the OBR's, which writes:

The Government has announced a number of policy measures that are expected to have a broadly neutral fiscal impact in aggregate between 2012-13 and 2017-18, with ‘giveaways’ almost exactly offsetting ‘takeaways’ over this period. Correspondingly, we also assume that they will have a broadly neutral effect on the economy, with no impact on the level of GDP at the end of the forecast horizon.

So the OBR thinks the fact that the budget is fiscally neutral means it is unlikely to have much effect on growth. But what about the medium-term changes?

The reduction in the main rate of corporation tax from 2015-16 has a small positive effect on business investment in our forecast, while the decision to abolish the contracted-out NICs rebate slightly reduces disposable income and household consumption. The Government has also decided to increase capital spending and reduce current departmental spending from 2015-16. Given the long time horizon and the fact that the overall net effect of these changes is relatively small, we have not adjusted our overall GDP forecast.

No change there then. It goes on and on. Introducing an allowance for employers' national insurance contributions:

Given the small size of these potential effects we have not made any explicit adjustments to our forecast.

The expansion of the Help to Buy scheme, the Build to Rent Fund, and the Right to Buy scheme:

…likely to have a relatively small additional impact on transactions and residential investment.

The only major impact assessed is with the cut in beer duty and fuel duty, which are likely to reduce CPI inflation by around 0.1 percentage points for 12 months.

That's it.

It's not a budget for prosperity, it's not a budget for growth. It's a budget for nothing at all.

Freya, the Number 11 cat. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Show Hide image

New Digital Editor: Serena Kutchinsky

The New Statesman appoints Serena Kutchinsky as Digital Editor.

Serena Kutchinsky is to join the New Statesman as digital editor in September. She will lead the expansion of the New Statesman across a variety of digital platforms.

Serena has over a decade of experience working in digital media and is currently the digital editor of Newsweek Europe. Since she joined the title, traffic to the website has increased by almost 250 per cent. Previously, Serena was the digital editor of Prospect magazine and also the assistant digital editor of the Sunday Times - part of the team which launched the Sunday Times website and tablet editions.

Jason Cowley, New Statesman editor, said: “Serena joins us at a great time for the New Statesman, and, building on the excellent work of recent years, she has just the skills and experience we need to help lead the next stage of our expansion as a print-digital hybrid.”

Serena Kutchinsky said: “I am delighted to be joining the New Statesman team and to have the opportunity to drive forward its digital strategy. The website is already established as the home of free-thinking journalism online in the UK and I look forward to leading our expansion and growing the global readership of this historic title.

In June, the New Statesman website recorded record traffic figures when more than four million unique users read more than 27 million pages. The circulation of the weekly magazine is growing steadily and now stands at 33,400, the highest it has been since the early 1980s.