OBR Forecasts 600,000 New Jobs and Continuous Growth Over Next Five Years

The OBR has released its March forecast alongside Philip Hammond’s Spring Statement today, predicting 5 more years of continuous growth. They also forecast 600,000 jobs being added to the economy. George Osborne is going to be waiting for his half a million job losses for a while yet…

The OBR have also upgraded their assessment of public finances for the next five years, with a lower projection of Government borrowing than in their last report before the Budget last year. Hammond has announced that the much-anticipated Spending Review will be launched before the Summer recess – if a Brexit deal goes through…

Green Taxes Set to Treble

Green subsidies – levied on consumer bills – will treble by 2021-22, The Office for Budget Responsibility says. The controversial tax take will rise from £4.6 billion in 2015-16 to £13.5 billion in 2021-22. The cash will be spent on subsidising economically non-viable energy, such as solar and wind farms. Earlier this week Centrica, the parent company of British Gas, got into a public spat with the government, blaming green levies for putting an extra £149 a year on household bills. The firm said green taxes caused “significant pressures” on pricing and that there was no option but to pass costs on to customers. Centrica CEO Ian Conn said:

“It is transmission and distribution of electricity to the home and government policy costs that are driving our price increase.”

A spinner for the Department for Business, Energy and Industrial Strategy (BEIS) claimed: “A number of independent reports have shown energy policy costs make up a relatively small proportion of household energy bills.”

Days later the government’s own forecaster admits green policy costs will treble…

OBR Debunks Remain Predictions on Growth, Unemployment

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Worth pointing out that yesterday’s OBR forecast comprehensively debunked several of the key claims made by the Remain campaign. During the referendum Osborne and the Treasury told voters 500,000 jobs would be lost in the aftermath of the Brexit vote. The OBR’s numbers are hugely more optimistic, they say unemployment will only go up by 100,000 by 2020 and that employment will rise too: 500,000 more jobs will be created. During the referendum the Treasury forecast a Leave vote to cause growth to plummet to -0.2% in 2017, and there to be a recession. The forecast is now +1.4% and no recession. What’s more, Project Fear’s threats that Brexit would cause permanently lower growth have been rubbished – the rate of growth will return to the long run average by 2019 say the OBR. Remember this when Remainers claim they told you so…

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