Spring Statement 2018

UK economic growth has slowed over the past couple of years, but the latest news has been somewhat more positive on the back of a stronger global economy. The Office for Budget Responsibility (OBR) nudged up its 2018 GDP growth forecast from 1.4% to 1.5% to reflect this better international outlook, which is in line with our own latest growth projection for this year.

Blog by Andrew Sentance, PwC's Senior Economic Adviser. The first “Spring Statement” since the Budget was moved to the Autumn last year was a pretty dull affair. The Office for Budget Responsibility did not give the Chancellor much to work with. Economic growth was revised up very slightly this year, but the medium-term outlook is very subdued. UK economic growth is forecast to be 1.6 percent or below for the next five years. This compares with a long-run economic growth rate of just over 2 percent going back to the early 19th century.

On 13 March HM Treasury issued an updated position paper on Corporate tax and the digital economy based on feedback that HM Treasury has gathered from the responses to the consultation and interaction with businesses since the closure of the initial consultation period.

John Hawksworth, chief economist at PwC, comments on the latest OBR forecasts for the UK economy and public finances announced in the Spring Statement.

Stella Amiss, head of tax policy at PwC, comments on the taxation of digital businesses.

Kevin Nicholson, head of tax at PwC, comments on the Chancellor’s Spring Statement.

Comments from PwC's tax practice on the consultations announced in the Spring Statement.