Spending plans outlined in the chancellor’s Autumn Statement represent “a very big fiscal risk”, according to the UK’s official economic forecaster.
Richard Hughes, chair of the Office for Budget Responsibility, told MPs on the Treasury Select Committee that spending plans carried a level of “uncertainty”.
He explained that much of the spending promised is funded by projected savings rather than income already received.
He explained that much of the spending promised is funded by projected savings rather than income already received.
In March, the OBR said it expected GDP – a measure of the size and health of a country’s economy – to grow by 1.8% in 2024 and 2.5% in 2025.
Those predictions have now been cut, with a new forecast suggesting the UK economy will grow by 0.7% in 2024 and 1.4% in 2025.
Presenting his Autumn Statement last week, Chancellor Jeremy Hunt announced tax cuts, tighter welfare rules, and further measures aimed at getting more people into work.
“It is very difficult to assess the credibility of the government’s spending plans, because after March of 2025 the government doesn’t have any spending plans,” Mr Hughes said, as he and other members of the OBR faced questions on the Autumn Statement.
Spending plans outlined in the chancellor’s Autumn Statement represent “a very big fiscal risk”, according to the UK’s official economic forecaster.
He explained that much of the spending promised is funded by projected savings rather than income already received.
Richard Hughes, chair of the Office for Budget Responsibility, told MPs on the Treasury Select Committee that spending plans carried a level of “uncertainty”.
In March, the OBR said it expected GDP – a measure of the size and health of a country’s economy – to grow by 1.8% in 2024 and 2.5% in 2025.
He explained that much of the spending promised is funded by projected savings rather than income already received.
He explained that much of the spending promised is funded by projected savings rather than income already received.
In March, the OBR said it expected GDP – a measure of the size and health of a country’s economy – to grow by 1.8% in 2024 and 2.5% in 2025.
Those predictions have now been cut, with a new forecast suggesting the UK economy will grow by 0.7% in 2024 and 1.4% in 2025.
Presenting his Autumn Statement last week, Chancellor Jeremy Hunt announced tax cuts, tighter welfare rules, and further measures aimed at getting more people into work.
“It is very difficult to assess the credibility of the government’s spending plans, because after March of 2025 the government doesn’t have any spending plans,” Mr Hughes said, as he and other members of the OBR faced questions on the Autumn Statement.
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