British Chancellor of the Exchequer Philip Hammond today presented cautious public spending plans, while economic forecasts for Great Britain continue to deteriorate as preparations for leaving the EU continue.
Hammond today presented unfavorable estimates as the slowing British economy and constant budget deficit do not leave enough money to increase public spending, and demands are made by employees in education, fire services and the military.
The need for the British Government to preserve certain funds in the treasury due to the uncertainty surrounding Brexit further increases the pressure.
Hammond today offered £XNUMXbn for two years to prepare for Brexit, and some relief for first home buyers, but avoided talking about other areas.
"We are at a turning point in our history. We are determined to look forward, not back, and strengthen the strength of the British economy," Hammond said in an address to the House of Commons.
He tried to present an optimistic vision of a "world Britain" that would embrace the technological revolution and take advantage of the opportunities brought by leaving the Union. He promised a "balanced" approach as demands are made to end austerity.
Although he tried to sound optimistic about the economic prospects of Great Britain after Brexit, Hammond revealed the painful truth in his speech - that the British economy is slowing down.
The independent British Office for Budget Responsibility (OBR) forecasted that Great Britain will achieve economic growth of 2017 percent in 1,5 and 2018 percent in 1,4. Growth of 2019 percent is forecast for 2020 and 1,3, while 2021 percent is expected in 1,5, and 2022 percent in 1,6.
On the other hand, the Eurozone is progressing with annual growth of around 2,5 percent.
During this time, the UK's public finances weakened. The net debt of the public sector now amounts to 87,2 percent of the gross domestic product, while in 2007 it was 40 percent, the British Statistical Office announced yesterday.
Opposition Labor leader Jeremy Corbyn immediately criticized Hammond's plans.
"Our country is characterized by increasing inequality and injustice. We were promised a revolutionary budget, but in fact there are no changes. People expected help from this budget and they have been let down. They have been let down by the Government, which, like the economy it manages, is weak and unstable and whose change is urgently needed," Corbyn said.
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