Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • November 2017
11

Autumn budget 2017 roundup: Growth and investment forecasts downgraded

Open-access content Wednesday 22nd November 2017 — updated 5.50pm, Wednesday 29th April 2020

Philip Hammond confirmed GDP growth and business investment for 2017 is likely to be lower than previously expected in his autumn budget today.

2

The chancellor said the Office for Budget Responsibility forecasts the UK economy to grow by 1.5% this year, down from the 2% predicted in March.

This is then expected to fall to 1.4% in 2018, and to 1.3% by 2020, with productivity growth in 2019 set to be 0.7% lower than thought earlier in the year.

"These revisions to productivity will knock nearly 3 percentage points off nominal GDP growth over the next five years," Center for Policy Studies head of economic research, Daniel Mahoney, said.

Hammond also announced there would be an immediate cash injection of £350m into the NHS to help over the winter months, and that £10bn would be invested over the course of the current parliament.

However, there were no new pension-related changes in the budget, which will be warmly welcomed by retirees following rumours the chancellor was looking to cut tax relief for pensioners.

"This is particularly remarkable because he needs an extra £8bn for the expenditure to which the government has already committed," commented deVere Group chief executive, Nigel Green.

The chancellor outlined his hope that the UK will lead in a new "technological revolution", committing over £500m in a range of initiatives from artificial intelligence, to 5G and full fibre broadband.

In addition, he explained how driverless cars would be a feature of the changing digital landscape, but that electric vehicles must come first, pledging £400m for charging infrastructure.

Hammond argued mathematics would be key to this new digital economy, saying the government would provide £40m to train teachers, and give £600 to schools for every additional pupil who takes A-level or Core maths.

After recent reports highlighting illegal air pollution levels, the chancellor announced a tax hike on diesel cars from April next year, and that the levy would fund a new £220m Clean Air Fund.

"This is an opportunity to restrict the use of highly polluting vehicles and really protect the air of our city centres in particular," Ramboll Environ technical director, Bram Miller, said.

Hammond also announced there would be an extra £3bn on top of the £700m already put aside for Brexit preparations, and that more would be allocated if necessary, adding: "No one should doubt our resolve."


Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession

This article appeared in our November 2017 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

Natural disasters highlight $1.7trn insurance protection gap worldwide

Just 30% of catastrophic losses caused by extreme weather events have been insured over the last decade, creating an insurance protection gap of $1.7trn (£1.3trn).
Wednesday 22nd November 2017
Open-access content
2

Geopolitical risk ranked top threat to economy by pension professionals

Pension professionals believe geopolitical risk is the biggest short to medium-term risk facing the global economy, according to the findings of a new survey.
Tuesday 21st November 2017
Open-access content
2

'Exploitation' of gig economy workers hitting pensions by £182m

New legislation was proposed today to crackdown on companies using the excuse of self-employed status to avoid providing workers with basic rights and benefits.
Monday 20th November 2017
Open-access content
2

Pension scheme trustees urged to prepare for imminent MiFID II regulation

Five key implications of the incoming MiFID II framework have been identified for pension scheme trustees ahead of its launch early next year.
Monday 27th November 2017
Open-access content
2

Ageing society and artificial intelligence feature heavily in industrial strategy

The UK government has said it will harness the power of innovation to help meet the needs of an ageing society in its industrial strategy published today.
Monday 27th November 2017
Open-access content
2

Millennials set to enjoy similar pensions to baby boomers

Young adults should receive similar retirement incomes to today’s pensioners, despite widespread pessimism among millennials about their financial futures.
Tuesday 28th November 2017
Open-access content

Latest from November 2017

2

SME insurance market set for digital transformation

Small firms are increasingly looking to interact with their insurers online, suggesting the market is set to experience a similar digital transformation to the one seen for personal insurance.
Monday 4th December 2017
Open-access content
2

CBI warns of 'sluggish' GDP growth

UK GDP is expected to grow at a rate of 1.5% this year and next before falling to 1.3% in 2019, according to forecasts released today by the Confederation of British Industry (CBI).
Monday 4th December 2017
Open-access content
2

Investment management efficiencies could slash pension costs by third

Sharing administration and transaction resources between investment managers could save a typical defined benefit (DB) pension fund £700,000 a year in fees.
Friday 1st December 2017
Open-access content

Latest from small_opening_image

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from inline_local_link

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 11

2

SME insurance market set for digital transformation

Small firms are increasingly looking to interact with their insurers online, suggesting the market is set to experience a similar digital transformation to the one seen for personal insurance.
Monday 4th December 2017
Open-access content
2

CBI warns of 'sluggish' GDP growth

UK GDP is expected to grow at a rate of 1.5% this year and next before falling to 1.3% in 2019, according to forecasts released today by the Confederation of British Industry (CBI).
Monday 4th December 2017
Open-access content
2

Investment management efficiencies could slash pension costs by third

Sharing administration and transaction resources between investment managers could save a typical defined benefit (DB) pension fund £700,000 a year in fees.
Friday 1st December 2017
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Shape the Future of Insurance

London (Central)
£ excellent package
Reference
149090

Senior Pricing Actuary - Life Reinsurance

London (Central)
£ excellent
Reference
149089

Insurance Investment Leadership Opportunities

Flexible / hybrid with 2 days p/w office-based
£ dependent upon experience
Reference
149088
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ