View more on these topics

UK GDP growth slashed to 2% for 2016

George-Osborne-19-March-700.jpg

The Office for Budget Responsibility has slashed its forecast for UK GDP growth in 2016 by 2 per cent, Chancellor George Osborne has revealed in the Budget.

The downgrade is greater than anticipated. Last week the British Chambers of Commerce downgraded its growth forecast for the UK economy from 2.5 per cent to 2.2 per cent.

In November’s Autumn Statement the projection for 2016 was 2.4 per cent, an upgrade from last year’s budget when the OBR forecast a growth rate of 2.3 per cent for 2016 and the following two years.

Growth figures for 2017 have also been reduced. According to the OBR, growth for 2017 will be 2.2 per cent, with a growth rate of 2.1 per cent for the following three years.

However the Chancellor maintained that: “The economy is set to grow faster than any other major advanced economy in the world.”

Figures released this morning by the Office for National Statistics show UK unemployment fell by 28,000 to 1.68 million between November and January. The rate of unemployment was unchanged at 5.1 per cent.

There was a marginal pick up in wage growth, from 2 per cent to 2.2 per cent, but the sluggish growth was another indicator of a downgrade to UK growth.

Recommended

Rising-House-Prices-Property-Ladder-700x450.jpg
1

Tony and Cherie Blair control £27m property empire

Tony and Cherie Blair’s property empire is worth £27m, according to research by the Guardian. The couple now own at least 10 houses and 27 flats, while their three eldest children, Euan, Kathryn and Nicholas, each have their names on at least one deed. The Blairs’ first property was a £30,000 house in the former […]

Paper-People-Cardboard-Cutout-700.jpg

CML members vote on trade body merger

Council of Mortgage Lenders members are voting on a proposed trade body merger. CML management visited lenders ahead of the start of the online voting period. A CML spokesman confirmed that voting has started but would not confirm start or end dates. He says: “We don’t want to get hung up on the timings or […]

John-Heron-700.jpg

Paragon updates buy-to-let product range

Paragon Mortgages has updated its buy-to-let products range. New products in the range include a two year fixed rate at 3.65 per cent with a 1.5 per cent product fee at 75 per cent LTV. Paragon’s buy-to-let range also includes a five year fixed rate at 4.49 per cent with a £995 fee at 75 […]

Mortgage Mole

Mortgage Mole: Car sick

Intrepid Mole, digging up the stories behind the news Car sick Comparisons that highlight the severity of the UK housing shortage are rarely new to Mole readers, well versed as they are in the ebb and flow of such things. But never has Mole heard house prices benchmarked against the cost of buying a car. […]

‘How to…audit your auto-enrolment scheme compliance’

Avoid pension penalties with our auto-enrolment checklist

According to the Pensions Regulator’s annual commentary and analysis report released this month, 785 potential non-compliance cases were referred for investigation, with 23 auto-enrolment compliance notices issued. And they predict that the use of their statutory powers is only going to increase.

Newsletter

News and expert analysis straight to your inbox

Sign up