Today, official HM Treasury comparisons of independent economic forecasts show a dramatic revision downwards in growth and upwards in inflation, unemployment and public sector net borrowing.
Institutions including City forecasters, such as Capital Economics, and non-City forecasters, such as the IMF, have downgraded GDP for 2017 from an average of 2.1 per cent in June to just 0.7 per cent now.
Similarly, average forecasts for inflation have increased from 1.9 per cent to 2.5 per cent for 2017; average forecasts for unemployment have increased from 4.9 per cent to 5.7 per cent for 2017; and average forecasts for public sector net borrowing, 2017-18, have increased from £45.5 billion to £63 billion.
It demonstrates the real impact on our economy resulting from Britain’s vote to leave the European Union and highlights the need for action from the Government to protect our economy, and the jobs and livelihoods of the British people.
Commenting, Rebecca Long-Bailey MP, Labour’s Shadow Chief Secretary to the Treasury said:
“Today’s figures confirm the real impact of Brexit on the UK economy.
“We need an emergency programme of investment to create jobs and lay the foundations for the high-skill, high-wage economy we deserve.
“It’s time for Chancellor Philip Hammond to stop putting Britain’s economic prospects on hold. We need a major programme of investment in infrastructure to rebuild and transform Britain.”
ENDS
Notes to editors
The Treasury’s ‘Forecasts for the UK economy’ show that in August 2016, GDP growth has been revised down and unemployment, inflation and public sector net borrowing has been revised up, compared to the same forecasts in June 2016
Forecasts for the UK economy: a comparison of independent forecasts, June 2016
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/529303/forecast_for_the_uk_economy_june_2016.pdf
Forecasts for the UK economy: a comparison of independent forecasts, August 2016
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/546279/PU797_Forecasts_for_UK_economy_352_August_2016.pdf