Mr Hammond hailed figures from the Office for Budget Responsibility (OBR) upgrading growth projections and forecasting falls in Government borrowing and national debt over the coming years.
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Hammond said the OBR was predicting GDP to grow by just 1.5% this year, followed by just 1.3% in 2019.
So although debt as a proportion of GDP is expected to fall from 85.6% of GDP this year to 77.9% in 2022-23, the actual amount of debt is expected to rise from £1,783bn to £1,893bn.
Government borrowing will be £45.2 billion this year – some £4.7 billion lower than predicted in November and £108 billion lower than in 2010.
That is £4.7 billion less than initially thought and it is expected that the level of United Kingdom government debt will begin to fall as a share of GDP from next year.
PHILIP HAMMOND’S optimism in the Spring Statement is all the more surprising because of his well-documented pessimism over Brexit and the terms of Britain’s departure from the European Union.
Greenpeace UK senior political adviser Rebecca Newsom said in response to today’s announcement: “The success of the plastic bag charge shows that a smart tax on plastic can work, so it’s good to see the Chancellor reconfirm his commitment to look into this”.
Hailing a modest improvement in economic forecasts, and what he called a “turning point” in the public finances, the chancellor sought to shrug off his image as the cabinet’s Eeyore, insisting he was “at my most positively Tigger-like”.
Eighty per cent said they were having to reduce the number or hours of teaching assistants to deliver a balanced budget for this year, and 47 per cent said they were having to reduce non-educational support and services for children.
Hammond’s statement highlighted the government’s plans to “keep Britain at the forefront of new technologies”, and said the government is committed to ensuring the country remains a digital leader.
“We heard a Chancellor, conservatively optimistic about our economic performance and growth, stating that there is light at the end of the tunnel”.
Britain could be paying into the European Union’s coffers for almost another half century even though Brexit day is little more than a year away, according to independent forecasts compiled for the government.
Delivering the first Spring Statement today, Mr Hammond said money raised from any tax changes would be invested in developing new, greener products and processes.
He ruled out ending austerity, but hinted he could increase spending on defence and the NHS in his Autumn Budget.
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These include a review to consider if single-use plastics and chewing gum should be taxed while the long-term impact of an ageing society will be examined. The move will help businesses to benefit from the change to three-year revaluations sooner.
