Rolling coverage of Chancellor Philip Hammond’s spring statement at 12.30pm, including the latest growth and borrowing forecasts for the UK
- Brexit divorce bill estimated at £37.1bn
- Economists: Growth outlook is woeful
- Philip Hammond: Light at end of the tunnel
- John McDonnell blast Hammond’s ‘complacency’
- Growth forecasts up in 2018, but down in 2021 and 2022
- Politics Live: Salisbury spy poisoning latest
The Scottish government is complaining that it is not getting its fair share of the money set aside for Brexit preparations. In a statement Derek Mackay, the Scottish finance minister, said:
We are just over 12 months away from formally exiting the EU without a clearly agreed path in terms of our on-going access to key EU markets – this remains the biggest uncertainty hampering economic growth and investment and dragging our economy down.
The UK government have indicated they will allocate £3bn over 2018-19 and 2019-20 for expenditure on Brexit preparations, but that the Scottish Government will only receive 2.5%, or £37m, of the funding allocated in 2018-19. No details on 2019-20 funding have been provided.
The government is theoretically committed to get net migration below 100,000 per year “Theoretically”, because many ministers believe the target is unachievable. And the OBR does not believe it will be hit either. This is what it says in a passage about its Brexit assumptions.
Specifically, as regards the economy forecast, we assume that:
The UK adopts a tighter migration regime following departure from the EU than that currently in place, but not sufficiently restrictive to reduce net inward migration to the desired ‘tens of thousands’.