United Kingdom: Autumn statement 2023 – Unlocking growth?

According to the OBR, the Chancellor had financial headroom of around £27bn, almost all of which he spent in three areas: a 2 percent cut in NICs, permanent tax relief for business investment, and further welfare reforms, “leaving debt falling by a narrow margin in five years”. The report continued:

“Higher inflation boosts tax revenues but also welfare benefits while higher interest rates push up debt servicing. But because departmental spending is left largely unchanged, this delivers a net fiscal windfall of £27bn.”