U.K. Bows to Worsening Economy, More Borrowing as Brexit Nears
- OBR sees 2018 growth at 1.4% compared with 1.6% March forecast
- Hammond sets aside 3 billion pounds for Brexit contigency plan
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U.K. Prime Minister Theresa May’s troubled government resigned itself to a deteriorating economic outlook as it committed 3 billion pounds ($4 billion) to prepare for Brexit and tried to make housing more affordable for the young.
In delivering his annual budget on Wednesday, Chancellor of the Exchequer Philip Hammond acknowledged official forecasts which showed Brexit already inflicting an economic cost. The Office for Budget Responsibility predicted growth will now undershoot 2 percent every year through 2021 and it halved its estimate for productivity gains over the next five years.