UK’s Annual Budget release preview - Barclays

The Barclays Research Team is out with their expectations on the UK’s Spring Statement, also known as the annual Budget release, due later today at 1130 GMT.

Key Quotes:

“Following the Chancellor's announcement at the Autumn Statement 2016, there will now only be one major fiscal event each year held in Autumn. Budget execution is well ahead of targets two months before the end of FY 2017, as January delivered a solid surplus of £10bn on healthy self-assessment revenues. The use of such extra headroom, if maintained, will be addressed at the Autumn Budget, while the Spring Statement.

It is unlikely to include policy measures but merely present an update of the macroeconomic assumptions.

GDP and productivity growth have been stronger than expected in the OBR's November projections suggesting the potential for an upgrade in near-term outlook; however, the longer-term forecasts are unlikely to be revised much.”