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Spring Statement Comment from Stuart Law, CEO

March 13, 2018

“There’s no doubt that the Spring Statement was rich in optimism, but the fact that the Chancellor has outlined promises ahead of the budget with the caveat of ‘if this growth continues’ is telling. It remains to be seen whether this positivity will continue ahead of Brexit, and this certainty is what is needed to improve confidence among investors and ultimately keep up the growth of the economy."
 
“In particular, the announcement that inflation is set to fall back to the target rate of 2% over the next year is likely to be met with a mixed reception from savers. On one hand, it may be that this will prevent them from losing money following a period of low interest rates combined with a high rate of inflation. However, in the long run, this is likely to reduce the pressure on the Bank of England to continuously raise interest rates, so the impact on savers is likely to be negligible."
 
“However, it’s promising to see the focus on the Housing Infrastructure Fund. We’ve seen a real and much-needed focus from the government on boosting the housing market, and it’s now vital that the government continues to support smaller developers and construction businesses.”