The OBR had a rather cheerful oulook regarding post-Brexit finances
The Office for Budget Responsibility (OBR) believes ending EU payments will allow the treasury to boost the coffers by £12.7billion, marking an extraordinary u-turn from its previously negative outlook.
The OBR said it now expects the economy to grow by two per cent this year, far faster than previous estimates meaning borrowing forecasts have been slashed.
However, that did not stop them from making a few more pessimistic Brexit predictions.
The OBR adds that its borrowing and deficit forecasts do not take account for “any one-off or ongoing EU exit-related payments” including a divorce payments. Some estimates have put the cost of parting almost £52billion (€60billion).
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Budget 2017: Philip Hammond hailed Britain’s booming Brexit economy today as he delivered his first Budget of the year
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Mr Hammond says he is 'building the foundations of a stronger, fairer, more global Britain'
Mr Hammond used his Budget statement to hail “an economy that has continued to confound the commentators with robust growth.”
He said: “Last year, the British economy grew faster than the United States, faster than Japan, faster than France.
Indeed, among the major advanced economies Britain’s growth in 2016 was second only to Germany
“Indeed, among the major advanced economies Britain’s growth in 2016 was second only to Germany.”
The announcement makes a mockery of the doom-mongering Remoaners, as the OBR has been forced to revise its post-Brexit forecast. The relatively rosy outlook belittles the gloomy prognosis reported in November.
The Government will be pleased with the predictions
Last night economics professor Kevin Dowd, a member of the pro-Brexit group Economists for Free Trade, welcomed the OBR’s brighter outlook.
He said: “We are now seeing these establishment bodies finally catching up with the realities of our economic prospects following the Brexit vote.”
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The OBR’s forecasts are relatively low on Brexit details but do make two large assumptions: that Britain will be out of the EU by April 2019 and that any savings made from leaving the bloc will be spent by the Government.
This would make it a “fiscally neutral” Brexit, according to the Financial Times.