Daily Archive: November 28, 2017

Nov
28

Budget: prospects for growth are not looking good, and may get worse

The UK faces the longest period of falling living standards since the 1950s – and that grim forecast is based on Brexit going well

That was the budget that wasn’t. There was a little fiddling at the edges; the cut in stamp duty designed to help first-time buyers amounted to nothing as it will cause house prices to rise and wipe out any benefit. In the end, it will help only existing homeowners. Same old, same old, in terms of austerity, with more cuts still to come for years ahead.

Not unrelated to that was the downgrade in the Office for Budget Responsibility (OBR) forecast of productivity growth and consequently economic growth.

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Nov
28

Rising household debt and stagnant pay major threats to UK, says OECD

Thinktank downgrades growth forecast for 2017, saying Brexit uncertainty will mean Britain missing global upswing next year

Rising household debt and flatlining wages are becoming a major financial stability risk as Britain slows as a consequence of Brexit, the Organisation for Economic Co-operation and Development has said.

The warning from the Paris-based thinktank on Tuesday came as it argued Brexit uncertainty will result in Britain missing an upswing in global growth next year. The OECD forecasts UK growth will be the slowest among G7 nations next year, down from 1.5% this year to 1.2% in 2018 and 1.1% in 2019, when only Japan will grow at a slower rate.

Productivity is an economic measure of the efficiency of a workforce. It typically measures the level of output per hour of work, or per worker.

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Nov
28

Survival after disorderly Brexit is possible for UK lenders, says Carney

Stress tests show impact would be ‘no worse’ than this year’s tests, which were at extreme of what might be expected

Mark Carney, the governor of the Bank of England, described the result of this year’s stress tests on seven major lenders as evidence they can withstand a disorderly Brexit.

Carney said the Bank had reached this judgment after considering a variety of factors, including the logistical impact faced by airlines and customs, as well as issues the City faces from processing complex derivatives transactions without a transition deal.

Related: High street banks ‘can cope with disorderly Brexit’

Related: London house prices fall for first time in eight years as rest of UK rises

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Nov
28

Brexit has bumped us from the fast lane to the slow lane – experts debate the data

Has Brexit caused the recent slowdown in the UK economy? Two former MPC members discuss the economic indicators

Senior economic adviser at the PwC consultancy and member of the Bank of England’s monetary policy committee from October 2006 to May 2011

Related: The Brexit economy: is the worst of the 2017 slowdown over?

Related: How has the Brexit vote affected the UK economy? November verdict

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Nov
28

How has the Brexit vote affected the economy? November verdict

Each month we look at key indicators to see what effect the Brexit process has on growth, prosperity and trade in the UK

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