UK's Hunt: OBR forecasts show 2024 GDP growth of 0.8%

UK Chancellor of the Exchequer Jeremy Hunt presents the Spring Budget to Parliament.

Key takeaways

"We can now help families with permanent cuts in tax."

"We need to boost GDP per capita, not just GDP."

"The OBR sees CPI below 2% target in just a few months' time."

"The OBR expects real household disposable income to rise by 0.8%."

"Will extend household support fund at current levels for 6 months."

"Will extend freeze in alcohol duty to February 2025."

"Will freeze fuel duty for a further year."

"Alcohol and fuel duty freezes will lower headline inflation by 0.2 percentage points in 2024/25."

"Will allow full expensing to apply to leased assets, as soon as it is affordable."

"Will increase VAT registration threshold to 90,000 pounds from April 1."

"The OBR forecasts 2024/25 underlying public debt-to-GDP ratio of 91.7% (November forecast 91.6%)."

"The OBR forecasts 2025/26 underlying public debt to GDP ratio of 92.8% (November forecast 92.7%)."

"The OBR forecasts 2026/27 underlying public debt to GDP ratio of 93.2% (November forecast 93.2%)."

"The OBR forecasts headline debt will fall in every year of forecast."

"Borrowing is forecast to drop to the lowest share of GDP since 2001 at the end of forecast."

"The OBR forecasts show 8.9 bln stg of headroom vs target to reduce debt-to-GDP ratio (November forecast: 13.0 bln stg)."

"The OBR forecasts show 2024 GDP growth of 0.8% (November forecast 0.7%), 2025 GDP growth of 1.9% (November forecast 1.4%), 2026 GDP growth of 2.2% (November forecast 2.0%)."

"The OBR forecasts show budget deficit to fall to 2.7% in 2025/26, 2.3% in 2026/27, 1.6% in 2027/28 and 1.2% in 2028-29."

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Market reaction

GBP/USD showed no immediate reaction to these remarks and the pair was last seen rising 0.15% on the day at 1.2720.