Britain has cut its official forecasts for economic growth for the next two years, Finance Minister Philip Hammond said on Wednesday, as he delivered the country's first budget statement since voters decided to leave the European Union. The weak public finances leave Hammond little room to ramp up public spending or make big cuts to taxes, Reuters reported.
Indeed, Hammond said the government would need to borrow billion of pounds more over the next five years, with net public sector debt forecast to rise to a peak of 90.2% in 2017/18, up from a projection of 81.3% in March.
The Office for Budget Responsibility, Britain's independent budget forecasters, said gross domestic product would grow by 1.4% in 2017, down from an estimate of 2.2% made in March, before voters decided to leave the EU.
Add new comment
Read our comment policy before posting your viewpoints