This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/uk-politics-38087110
The article has changed 7 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Autumn Statement: Government defends post-Brexit vote economy forecasts | |
| (35 minutes later) | |
| The government has defended economic forecasts in the chancellor's Autumn Statement after criticism by some pro-Brexit MPs that they are too gloomy. | The government has defended economic forecasts in the chancellor's Autumn Statement after criticism by some pro-Brexit MPs that they are too gloomy. |
| Philip Hammond quoted Office for Budget Responsibility (OBR) forecasts of more government borrowing and reductions in economic growth after the Brexit vote. | |
| Ex-minister Iain Duncan Smith claimed the OBR "hasn't got anything right." | Ex-minister Iain Duncan Smith claimed the OBR "hasn't got anything right." |
| But treasury minister David Gauke said it was right to work on the basis that the OBR forecasts were correct. | But treasury minister David Gauke said it was right to work on the basis that the OBR forecasts were correct. |
| Mr Hammond told MPs the UK's deficit would no longer be cleared by 2020, while the OBR estimated the government would have to borrow an extra £122bn compared with what was forecast in March, with the referendum result accounting for £58.7bn of this. | |
| The Brexit vote meant potential growth in the current Parliament would be 2.4% lower than forecast in March, according to the OBR. | The Brexit vote meant potential growth in the current Parliament would be 2.4% lower than forecast in March, according to the OBR. |
| The OBR said producing a forecast was "far from straightforward", as it had not been given any extra information from the government about its negotiation plans. | The OBR said producing a forecast was "far from straightforward", as it had not been given any extra information from the government about its negotiation plans. |
| It said: "We have made a judgement - consistent with most external studies - that over the time horizon of our forecast any likely Brexit outcome would lead to lower trade flows, lower investment and lower net inward migration than we would otherwise have seen, and hence lower potential output." | It said: "We have made a judgement - consistent with most external studies - that over the time horizon of our forecast any likely Brexit outcome would lead to lower trade flows, lower investment and lower net inward migration than we would otherwise have seen, and hence lower potential output." |
| The organisation said the economy will be affected by future choices that the government makes about regulatory and other policies and it "could move in either a growth-enhancing or a growth-impeding direction". | The organisation said the economy will be affected by future choices that the government makes about regulatory and other policies and it "could move in either a growth-enhancing or a growth-impeding direction". |
| Asked about the OBR's predictions, former Work and Pensions Secretary Mr Duncan Smith told the Daily Telegraph it was "another utter doom and gloom scenario" from the organisation. | Asked about the OBR's predictions, former Work and Pensions Secretary Mr Duncan Smith told the Daily Telegraph it was "another utter doom and gloom scenario" from the organisation. |
| The Economists for Brexit group predicted more "humiliating U-turns" from the OBR, saying it had "assumed a pessimistic outlook for the UK economy outside the EU, based on bad economic policy-making". | The Economists for Brexit group predicted more "humiliating U-turns" from the OBR, saying it had "assumed a pessimistic outlook for the UK economy outside the EU, based on bad economic policy-making". |
| Conservative MP John Redwood added: "Their [GDP growth] forecast probably is too low, their borrowing forecast is far too high, and we'll get good access to the single market once we're out of the EU." | Conservative MP John Redwood added: "Their [GDP growth] forecast probably is too low, their borrowing forecast is far too high, and we'll get good access to the single market once we're out of the EU." |
| But speaking on BBC Newsnight, Chief Secretary to the Treasury Mr Gauke said: "We have an independent body that makes the forecasts and it is sensible for a government to work on the basis that that independent body has got it right." | But speaking on BBC Newsnight, Chief Secretary to the Treasury Mr Gauke said: "We have an independent body that makes the forecasts and it is sensible for a government to work on the basis that that independent body has got it right." |
| He said nobody should be surprised that uncertainty created by the Brexit vote would hit growth. | He said nobody should be surprised that uncertainty created by the Brexit vote would hit growth. |
| "People of course are entitled to their opinion and I guess in a year or two's time we can look back and see who was right and who was wrong," he said, adding that the forecasts were "not government numbers". | "People of course are entitled to their opinion and I guess in a year or two's time we can look back and see who was right and who was wrong," he said, adding that the forecasts were "not government numbers". |
| In his first major speech as chancellor, Mr Hammond vowed to make the UK economy "resilient" for Brexit. | In his first major speech as chancellor, Mr Hammond vowed to make the UK economy "resilient" for Brexit. |
| The chancellor told MPs the Brexit vote would "change the course of Britain's history", making it "more urgent than ever" to tackle long-term economic weaknesses. | The chancellor told MPs the Brexit vote would "change the course of Britain's history", making it "more urgent than ever" to tackle long-term economic weaknesses. |
| Labour said the statement offered no hope for the future after six "wasted" years. | Labour said the statement offered no hope for the future after six "wasted" years. |
| Among announcements in the Autumn Statement were: | Among announcements in the Autumn Statement were: |
| The speech also triggered questions about the future of the so-called "triple lock" protection for state pensions, while campaigners criticised the lack of extra funding for social care. | The speech also triggered questions about the future of the so-called "triple lock" protection for state pensions, while campaigners criticised the lack of extra funding for social care. |
| The triple-lock guarantees that state pensions rise by the same as average earnings, the consumer price index, or 2.5%, whichever is the highest. | The triple-lock guarantees that state pensions rise by the same as average earnings, the consumer price index, or 2.5%, whichever is the highest. |
| Mr Hammond said the government would meet this pledge, adding: "But as we look ahead to the next Parliament, we will need to ensure we tackle the challenges of rising longevity and fiscal sustainability." | Mr Hammond said the government would meet this pledge, adding: "But as we look ahead to the next Parliament, we will need to ensure we tackle the challenges of rising longevity and fiscal sustainability." |
| Former Pensions Minister Baroness Altmann, who has said the pledge is too expensive and should be scrapped, said: "The chancellor's speech signalled pretty clearly that the state pension triple lock is only safe until 2020. | Former Pensions Minister Baroness Altmann, who has said the pledge is too expensive and should be scrapped, said: "The chancellor's speech signalled pretty clearly that the state pension triple lock is only safe until 2020. |
| "I would like to see a double lock announced, whereby state pensions would rise in line with either earnings or prices." | "I would like to see a double lock announced, whereby state pensions would rise in line with either earnings or prices." |
| Meanwhile health and social care leaders have condemned the statement for a "missed opportunity" to announce new investment. | Meanwhile health and social care leaders have condemned the statement for a "missed opportunity" to announce new investment. |
| Responding to Mr Hammond in the Commons, shadow chancellor John McDonnell condemned the government's approach to austerity and said the people the prime minister promised to protect - those who are "just about managing" - had been "betrayed". | Responding to Mr Hammond in the Commons, shadow chancellor John McDonnell condemned the government's approach to austerity and said the people the prime minister promised to protect - those who are "just about managing" - had been "betrayed". |
| "After all the sacrifices people have made over the past six years, I fear today's statement has laid the foundations for more wasted years," he added. | "After all the sacrifices people have made over the past six years, I fear today's statement has laid the foundations for more wasted years," he added. |
| The SNP said Mr Hammond had offered little on the "elephant in the room" - Brexit - while the Lib Dems said the government would "hit people in the pocket through their hapless handling of Brexit". | The SNP said Mr Hammond had offered little on the "elephant in the room" - Brexit - while the Lib Dems said the government would "hit people in the pocket through their hapless handling of Brexit". |
| But UKIP said billions were being wasted by the government "delaying" the UK's exit from the EU. | But UKIP said billions were being wasted by the government "delaying" the UK's exit from the EU. |
| Plaid Cymru said there was little in the statement to help rebuild the Welsh economy and close the wage gap with England. | Plaid Cymru said there was little in the statement to help rebuild the Welsh economy and close the wage gap with England. |
| What questions do you have about the Autumn Statement? | What questions do you have about the Autumn Statement? |