It is hard to find a suitable response to what is no longer simply austerity but the willed destruction of social generosityIt was a budget that coincided with International Women’s Day. The chancellor marked the happy event by sprinkling generosity on the hardworking wives and mothers who, in their resilience to violence and discrimination, make up the wellspring of this nation’s doughty good cheer. So £20m, over three years, to domestic violence charities; a £5m fund to help women back into work after having children; another £5m to the ones who haven’t necessarily done anything reproductively useful, and merely want to celebrate next year’s centenary of female suffrage.Related: Women bearing 86% of austerity burden, Commons figures revealWe could say austerity kills. But this isn’t even austerity. No books are being balanced as a result of these actionsRelated: Million Women Rise: thousands march through central London Continue reading...

Poorest countries hit hardest as lower commodity prices and strong dollar raises repayment bills, campaigners warn

Bill Gates’s idea of taxing robots sounds like common sense but we need more practicable ways of redistributing wealthA tax on robots is one of those ideas that sounds attractive, and when it’s put forward by someone with the credibility of Bill Gates, as it was in a recent interview with Quartz magazine, you can guarantee it will generate a lot of interest. If he, of all people, says taxing robots is a good idea, then surely it is worth considering?Well, perhaps not.Related: Brand human: why efficient automation will not always be best for businessRelated: Robots won't just take our jobs – they'll make the rich even richerRelated: Yanis Varoufakis: 'People were confused that I didn't support Brexit' Continue reading...

Research finds no G20 countries interact with EU without arrangements over trade, as UK could do if it leaves without dealIf Britain leaves the European Union without a replacement trade deal its commercial links with the bloc will overnight become less favourable than any other major industrialised nation, a cross-party campaign has warned as Theresa May prepares to trigger article 50.Research commissioned by the Labour MP Pat McFadden – a supporter of Open Britain, which campaigns for continued ties with Europe in the aftermath of Brexit – found that no members of the G20 group of richer nations currently interact with the EU without some sort of trade arrangement.Related: The Guardian view on the Brexit negotiations: no deal is not an option | Editorial Continue reading...

Ill-fated austerity plans will wreck the country, but the government knows it has no opposition to worry about

Despite his rib-tickling performance on Wednesday, Philip Hammond will sadly not be appearing in front of the Commons committees this weekTradition has it that, the week after the budget, the Treasury select committee gives the chancellor of the exchequer a good grilling about his sums.Not this time. Having already broken convention by abolishing future spring budgets and then using his final one to deliver a few gags (“they don’t call it the last Labour government for nothing”), Philip Hammond will be spared from explaining himself to Andrew Tyrie and co this week. Continue reading...

Donald Trump pushed the Federal Reserve to raise rates, but the policy could backfire on president’s economic planDonald Trump spent much of his campaign for the White House attacking the Federal Reserve chief Janet Yellen. Shouting at the camera in the first presidential debate, he even went as far as to accuse the head of the central bank of “being political”, spurring her to deny she was anything but impartial.Trump’s anger was a lightning rod for American savers, who like savers across the developed world, have suffered eight years of ultra-low interest rates. A rate rise this week will be taken as another sign by commentators that the Fed is slowly capitulating to the new president’s tub-thumping campaign. Continue reading...

If we don’t ensure free trade benefits are distributed equally, the world could get dangerous very quicklyIt’s not often you go to a conference on agriculture and come away feeling quite scared for the future. But this week’s Abare’s 2017 Outlook conference featured a talk on the future of trade that painted a dire picture of trade barriers and nations moving into blocks that engage in trade wars and perhaps more violent conflicts. It was a stark warning to those who value the benefits of trade of the need to also value the concerns of those who miss out on those benefits.In a conference featuring the usual talks on innovation in agriculture and pest management, the Abare conference also featured a speech by Rabobank economist, Michael Every that had me – and most in the audience – wondering if it was time to start collecting canned food and building a bunker.Related: Trump could end global trade and force choice between US and China, says economistRelated: Top bosses question benefits of globalisation, PwC survey finds Continue reading...

There is nothing progressive about cutting taxes for companies and the very wealthiest while hitting the self-employedThis week’s budget revealed the government’s true priorities. It’s not about supporting workers or small businesses. It’s a government for tax avoiders and giant corporations. Phillip Hammond was boasting about the continuing cuts to taxes for corporations and the super-rich, now totalling £70bn over the next few years, even as he hammered the self-employed with a £2bn national insurance tax hike.The unfairness of this is very clear. They’re making the minicab driver pay more, but the company they work for pays less. A hairdresser earning £15,000 a year will be £139 worse off as a result of the measures announced. On the day, the government has attempted to disguise the true impact of the change by hiding it behind an earlier revision to national insurance contributions. But anyone earning over £8,000 will be hit by the new changes.Related: 'Rookie error': former chancellor criticises Hammond's NICs planRelated: OmNICshambles: how it all went wrong for 'spreadsheet Phil' Hammond | Heather Stewart and Larry Elliott Continue reading...

Protests thwart plans to hold around 25,000 auctions as banks struggle to sell properties to settle shortfallsThe cavernous halls of Athens’ central civil court are usually silent and sombre. But every Wednesday, between 4pm and 5pm, they are anything but. For it is then that activists converge on the building, bent on stopping the auctions of properties seized by banks to settle bad debts.They do this with rowdy conviction, chanting “not a single home in the hands of a banker,” unfurling banners deploring “vulture crows”, and often physically preventing notaries and other court officials from sitting at the judge’s presiding bench.Related: Greek farmers clash with riot police in Athens over austerityRelated: Greece desperate for growth strategy as public mood darkens Continue reading...

President Trump quickly claims credit for 235,000 jobs created last month as pressure on Federal Reserve grows to order first of three predicted risesThe US Federal Reserve is poised to raise interest rates next week for only the third time since the financial crisis after the latest job numbers for the world’s largest economy beat expectations.The closely watched Labor department data for February showed that the number of new jobs soared to 235,000, the best month for job growth since July last year, adding to pressure on the central bank to agree the first of three predicted rises this year.Related: US jobs report means Fed rate hike is a bolt-on certaintyRelated: US jobs report signals Fed will raise interest ratesRelated: US jobs report: strong figures pave way for Fed interest rate hike - as it happened Continue reading...

It’s good news for Donald Trump as employment rose by more than expected – but the Federal Reserve will be worried about the economy overheatingThe latest US jobs report removes any lingering doubts about whether the Federal Reserve will raise interest rates next week.Following news that the world’s biggest economy generated 235,000 net new non-farm jobs in February, it is a bolt-on certainty that the central bank will push up the cost of borrowing by a quarter of a point.Related: The Guardian view on US rate rises: a sterling challenge | Editorial Continue reading...

The coming housing benefit cuts show the damage that centre-left fiddling has done. For the sake of all who need a home, Labour needs to own this issueHousing benefits for 18- to 21-year-olds are due to be cut next month. This is, of course, a policy that is both vicious and vacuous, and whose impacts will be felt in a rise in homelessness and the increased vulnerability of young people, especially those who are members of marginalised and at-risk groups. Even David Cameron’s government shied away from the idea.Access to housing is probably the most vital issue in UK politics at the moment, despite all the parties being mindlessly distracted with the Brexit dog and pony show. Houses in the UK are the smallest in Europe, badly built and, despite successive governments claiming they want to make them “affordable,” absurdly expensive. Over the years policymakers have shifted towards treating houses as assets first, and only secondarily as places that people live in. Asset appreciation is probably the closest thing we have to “printing money” in our economy, and the short-term gains that can be realised for free have proved too attractive for governments to resist.Related: Housing benefit cuts 'put young people at risk of homelessness'Related: My homeless friend’s death shocked me into taking action | Susannah Tresilian Continue reading...

Frustrated from implementing much of his economic agenda, the president can only continue lashing out at perceived enemiesDonald Trump took office promising a raft of sweeping economic policy changes for the United States. He has quickly discovered, like previous US presidents, that America’s political system is designed to prevent rapid, large-scale change, by interposing formidable institutional obstacles, from the Congress and career civil servants to state governments and the courts.Start with reform of personal income tax. This should be a slam-dunk, because the president and congressional Republican leaders are on the same page. Trump’s goal of removing the government’s groping hand from Americans’ pockets, by cutting the top marginal tax rate on ordinary income from 39.5% to 33%, is entirely consistent with mainstream Republican ideology, according to which high tax rates penalise success and stifle innovation.Related: Trump's border tax could damage the US a lot more than a wall | Kenneth Rogoff Continue reading...

Heather Stewart is joined by Larry Elliott, Jonathan Freedland, Rowena Mason and Torsten Bell to discuss Philip Hammond’s first budget. We hear from Labour’s Jonathan Reynolds and Tory Ed Vaizey. Plus: Henry McDonald in Belfast on the deadlock in Northern Ireland’s power-sharing talksSubscribe and review: iTunes, Soundcloud, Audioboom, Mixcloud, Acast & Stitcher and join the discussion on Facebook and TwitterPhilip Hammond’s first budget is met with a barrage of bad headlines and threats of a Tory revolt.Has a Tory manifesto tax pledge been broken? And has ‘Spreadsheet Phil’ forgotten to do his political calculations? Continue reading...

Forget national insurance rates. The IFS and Resolution Foundation focus on the real story: 15 years without a pay rise, a decade of lost growthFifteen years without a pay rise. The most protracted squeeze on real wages since Nelson’s victory over Napoleon’s fleet in the Battle of Trafalgar. A lost decade for productivity growth.The gist of the post-budget analysis from two of Britain’s leading thinktanks was simple: the economy continues to break records – mostly for the wrong reasons.Related: No pay rise for 15 years, IFS warns UK workers Continue reading...

There’s a new mood in the United States and a turbulent world will have to start focusing on monetary policy again“The stocks were sold; the Press was squared/ The Middle Class was quite prepared.” What Hilaire Belloc wrote of Lord Lundy applies double to Janet Yellen. With excellent reason. With the crybaby aristo, all that effort was spent on his career in politics; Ms Yellen, on the other hand, is doing something far more important. The head of the US central bank is busy preparing America, its new president, and indeed the world, for rising interest rates – and for a new economic era. The story of US interest rates this decade is simple to the point of tedium. The key fed funds rate has been dragging along just above zero ever since the banking crash. In December 2015, it was nudged up by a quarter of a percentage point by Ms Yellen and her colleagues at the Federal Reserve. A whole year later, they nudged it up again, which means that seven years after the notional end of the US recession it stands at mere 0.75%.That is set to change. Over the past few weeks, rate setters at the Fed have dropped broader and broader hints that interest rates will go up as soon as next Wednesday – and will keep going up. Last Friday was the turn of Ms Yellen. Speaking in Chicago, she said: “We currently judge that it will be appropriate to gradually increase the federal funds rate if the economic data continue to come in about as we expect.” That is about as straightforward as you get in central-bank speak. Nor is that likely to be the end of the rises: according to the Fed’s charts, committee members now forecast three interest-rate rises this year alone, and more in 2018. There are geopolitical reasons to hold off making too early a move. Next month, France’s presidential election, in which rightwing, anti-euro candidate Marine Le Pen is leading the polls, kicks off. Last year, the Fed held off in June before the Brexit vote. Continue reading...

Thinktank’s post-budget analysis says average wages will be no higher in 2022 than in 2007 with weak pay growth exacerbated by looming welfare cutsWorkers in Britain are on course to suffer an unprecedented 15 years of lost earnings growth and have been warned to prepare for a third successive parliament of austerity by a leading thinktank.Analysing Philip Hammond’s spring budget, the Institute for Fiscal Studies (IFS) said that after suffering a lost decade of earnings growth, households were now about to be hit by big welfare cuts.

European Central Bank says ‘sense of urgency’ has diminished, as it leaves interest rates at record lows

Company blames ‘very aggressive’ rival and rising prices for slowdownDomino’s Pizza suffered a sharp slowdown in sales growth in early 2017 as rival Pizza Hut cut prices and consumers reined in spending.David Wild, the Domino’s chief executive, said Pizza Hut was “very aggressive” in January and that consumers were more cautious about spending. Continue reading...

Guardian readers respond to Philip Hammond’s hike in national insurance contributions for self-employed people

Republican plan aims to close trade deficit and raise revenue – but it could hurt importers and spark short-term job lossesIn many ways, the Republican party’s plan to implement a “border adjustment tax” in the US is a virtual complement to the physical wall Donald Trump plans to erect on the Mexican border. Although the border adjustment tax has not seeped into public consciousness in nearly the same way as Trump’s wall, it could end up affecting the average American a lot more – and not necessarily in a good way.On the surface, the basic idea is to slap a tax of, say, 20% on imports, and to provide tax breaks worth a similar amount on exports. Most populists’ gut reaction is that this must be fantastic for US jobs, because it discourages imports and encourages exports. Unfortunately, as many have pointed out, there is a loose screw in this logic, which is that the US has a floating exchange rate.Related: Donald Trump has made rookie mistakes – he must change his approach Continue reading...

The only way for the National Health Service to avoid years of deficits is for it to outsource its buildings to professional management companiesThe NHS was offered little relief in Wednesday’s budget. The proposed spending increase of £250m in social care the first year and then £130m the following two years will hardly cover inflation, let alone other cost pressures that the shortfall places on the health service. With such austerity the NHS faces years of underfunding, according to a King’s Fund report.Related: Stop pretending we can’t afford the NHS: that’s the message of our march today | Larry SandersRelated: NHS struggling to plug a £22bn funding 'black hole', says reportRelated: Philip Hammond keeps his powder dry with a 'boring' budget | Larry Elliott Continue reading...

The party of entrepreneurs increases taxes on them. This budget’s contradictions will come to haunt Theresa MayTheresa May’s politics are at war with her very own policies. What she says is utterly undermined by what she actually does. No matter which way I look at Wednesday’s budget, that is the conclusion I end up at.The prime minister vows “a change is gonna come”. Her chancellor delivers more of the same cuts. In No 10, they fret about “just-about-managing” families. In No 11, they make policies that, in their own budget analysis published yesterday, hit the just about managing harder than the rich. To Tory activists, May declares: “The government I lead will be driven not by the interests of the rich and powerful, but by the interests of ordinary, working-class people.” To Tory MPs, Philip Hammond boasts about the cuts he is making to corporation tax. Indeed, flick through the red book and the single biggest giveaway it lists is the two successive reductions to taxes on big businesses, worth £18bn over the next five years. Compare that to the £2bn he’s coughed up for care for elderly people.Related: Will Theresa May’s ‘just about managing families’ fall for the rhetoric? | Sonia Sodha Continue reading...

Demand from European fraud watchdog underlines challenges facing Theresa May as she heads to summit on ThursdayThe prospect of a £1.7bn fine imposed on the UK by the EU’s fraud watchdog is expected to cast a shadow over Theresa May’s summit with European leaders on Thursday.The prime minister’s spokesman rejected accusations on Wednesday from Olaf (Office Européen de Lutte Antifraude) that Britain is liable for allowing criminal gangs to flood black markets in the continent with illegal Chinese goods. Continue reading...

Forecaster revises prediction for UK economy in 2017, but says growth will slow next year as inflation hits spendingThe UK economy will confound forecasts for a Brexit-related slowdown through 2017, but will then quickly run out of steam as rising prices hit consumer spending, the Office for Budget Responsibility has predicted.The government’s independent forecaster said that since its November outlook, the economy had performed better than expected and it raised its forecast for economic growth this year to 2% from 1.4%. But it predicts growth will be slower than previously thought in 2018, at just 1.6%.Related: UK economy defies fears of slowdown after Brexit vote Continue reading...

Guardian Money editor Patrick Collinson runs through some of the main items in Chancellor Philip Hammond’s first budget. There was a tax hike for self-employed people and and welfare benefits were frozen once more, but better news for people on PAYE as tax free allowances were modestly increased and there was a commitment to tougher regulations on consumer subscription services

Live coverage, reaction and analysis to the chancellor’s first, and final, spring budget

The continuous beep of the cardiograph was music to Hammond’s ears. The country was flatlining. So was the Commons …He’d come to praise the economy. But while he was there he might as well also bury it. They didn’t call him Phil “The Undertaker” Hammond for nothing. This was to be the Undertaker’s last spring budget. Just as well, as he didn’t really have anything much to say. Not that it would stop him from taking his time in not saying it. Seldom has a chancellor been on his feet for so long and said so little.Related: Philip Hammond announces tax rises for self-employed and free school funds – budget liveRelated: What the 2017 budget means for you Continue reading...

Windows smashed and stones hurled at police firing teargas as more than 1,000 people travel from Crete to protest against tax hikesFarmers who travelled to Athens from Crete have clashed with riot police in the latest unrest on the streets of the Greek capital, prompted by the government’s austerity policies.The confrontation occurred outside the agriculture ministry, where farmers wielding staffs engaged with police firing teargas to prevent them from entering the building. Continue reading...

The chancellor, Philip Hammond, has delivered the budget. These are the key points, with political analysis

Chancellor increases national insurance for self-employed, contrary to promise made four times in 2015 election manifestoPhilip Hammond sparked a political row on Wednesday with a tax grab on self-employed workers that breached a Conservative manifesto pledge not to raise national insurance rates.Related: The Undertaker's budget brings death, taxes then a crazy kamikaze attack | John CraceRelated: Few will spot the difference in national insurance – at first | Patrick CollinsonRelated: Philip Hammond keeps his powder dry with a 'boring' budget | Larry ElliottRelated: Budget 2017 live: Hammond announces free school funds, and tax rises for self-employedHere’s a snapshot of economic data announced by the Chancellor #Budget2017 pic.twitter.com/m3Lq5e1VtQ Continue reading...

The chancellor saved big announcements for the autumn – and he is aware Brexit could still take the economy off coursePhilip Hammond promised a “boring” budget and he was as good as his word. It was quite an achievement to string his speech out for almost an hour because there was precious little in it that hadn’t been pre-announced.Most of the time, Hammond rehashed spending commitments and tax changes from previous budgets and autumn statements or said the government would be taking a close look at pressing issues such as the future of social care. Truly, this was a chancellor who hit the ground reviewing.Related: Key points of the budget 2017 – at a glance Continue reading...

Figures show public finances are looking in better shape – but Philip Hammond is likely to hold money back to help weather BrexitBudget 2017: Philip Hammond sets out tax and spending plans - live

Women are massively more affected by budget cuts than men, says the Labour peer. They are more likely to be single parents, earn less and work part time than their male counterparts. She argues the government must replace ‘gender-neutral’ budgeting with economic policies that put women first Continue reading...

Philip Hammond denies big changes in spring budget as UK economy continues to perform strongly. But what does that mean for public finances?Philip Hammond has played down the significance of the spring budget and denied he plans to surprise parliament with big spending plans or tax reforms.This was always going to be a “just in case” budget, only bursting into life should the public finances need rescuing from a further slowdown in the economy. But the economy is performing strongly, even as it slows, leaving the chancellor to continue where he left off in the autumn statement: focusing on relatively limited measures to improve the UK’s infrastructure, skills and education.Related: Six key charts you need to make sense of the budget Continue reading...

UK expected to grow faster than thought in 2017 but chancellor urged to support jobs amid fears over inflation and house pricesThe west’s leading economic thinktank has raised its outlook for the UK this year, in a boost to Philip Hammond ahead of his budget. But the Organisation for Economic Cooperation and Development said it still expected Britain’s economy to shift down a gear compared with last year as rising inflation hits households.The Paris-based organisation predicts that after expanding 1.8% in 2016, the UK economy will grow 1.6% this year. That is faster than the 1.2% it was predicting in late November. It made no changes to its earlier forecast for growth to slow further in 2018 to just 1% – which would be the weakest performance since the depths of the global financial crisis in 2009. It also highlighted rapid house price growth in the UK and other countries as a potential warning sign of another economic downturn. Continue reading...

Sharp fall in pound since EU referendum feeds into big rise in food prices with butter up 15%, fish up 8% and tea up more than 6%Supermarket inflation doubled last month as shoppers had to pay more for staples such as butter and tea, underlining expectations that household budgets will come under extra pressure in 2017.Grocery inflation jumped to a near three-year high of 1.4% in the 12 weeks to 26 February, from 0.7% in the 12 weeks to 29 January, according to the consumer consultancy Kantar Worldpanel. The cost of fruit and vegetables – a large proportion of which are imported – also rose. Continue reading...

Analysts suggest rising inflation is starting to rattle consumers as pre-Christmas boom comes to an abrupt halt and even once-buoyant car sales slip backBritain’s hard-pressed retailers have urged Philip Hammond to rethink government plans for revamping business rates amid signs that rising inflation has led to the weakest high street spending in more than five years.A report from the British Retail Consortium and KPMG found that the spurt in consumer spending seen in the run-up to Christmas had come to an abrupt halt, with the result that non-food sales are falling for the first time since the economy was flirting with a double-dip recession in November 2011.Related: Business chiefs tell chancellor: reform business rates now to avert high street crisis Continue reading...

As the chancellor prepares to slash the state he claims there’s no cash. Yet he’s preparing to give billions away to the richHow perfectly their faces fit the parts they play, this pair of graveyard undertakers to public services. Chancellor and prime minister use their grim solemnity to persuade the nation that there is no alternative. It’s all a charade – and they are, of course, play-acting – but they do it alarmingly well. Polls show they still convince voters that this extreme punishment is a doleful necessary.Related: Chancellor's budget to build up Brexit reserves, not tackle NHS crisisAnother £12bn axe will fall in April on ‘hardworking' low-paid families, plus £3.7bn taken from disability pay Continue reading...

Larry Elliott’s authoritative piece on the parallels between today’s economic and political trends and those of the 1930s (After the Crash, The 1930s supplement, 4 March) surprisingly omits mention of one contribution to the UK’s current budget deficit: Gordon Brown’s reckless decision in his last budget as chancellor to reduce the income tax rate from 22% to 20%. Had we retained higher tax revenues then, would the coalition and Tory governments have had the excuse to impose George Osborne’s unprecedented and profoundly regressive austerity budgets and the Brexit outcome they probably contributed to?

Chancellor urged to scrap planned tax cuts as figures reveal extent to which living standards will be squeezed by rising pricesPhilip Hammond is being urged to scrap cuts to inheritance, corporation and income tax in order to plough money into benefits, as figures reveal the extent to which living standards are going to be squeezed by rising inflation.Analysis by the Resolution Foundation, shared exclusively with the Guardian, shows a “double-whammy” for lower-income working families who the government has said it wants to target.Related: Chancellor's budget likely to appease dissent and aim to tackle Brexit | Heather Stewart Continue reading...

Michael Every, an English economist based in Hong Kong, to tell conference world could be split into trading blocs based around currenciesThe presidency of Donald Trump could mark the breakdown of global trade and the division of the world into trading blocs based around currencies – forcing Australia to choose between the United States and China.That is the scenario that will be painted by Michael Every, head of financial markets Asia Pacific for Rabobank at the Australian Bureau of Agricultural and Resource Economics and Sciences (Abares) Outlook conference on Tuesday.Related: Trump presidency poses threat to global economy, warns Fitch Continue reading...

‘No spending spree’ warning from Philip Hammond, who is likely to guard against economic damage of UK leaving EUPhilip Hammond is expected to use Wednesday’s budget to announce that tax revenues will be used to build up a reserve to deal with uncertainties arising from Brexit, rather than increase spending on the health service.The chancellor has indicated that some extra money will be allocated for social care. The shadow chancellor, John McDonnell, has warned that £12bn should be immediately redirected to the NHS, warning that “the crisis is happening now”.Related: A budget in the shadow of Brexit leaves Hammond short of choicesRelated: Budget 2017: Hammond to tell us the Brexit vote could have been worse Continue reading...

With debt repayments of €7bn due in July and default looming, Greek government hunts rescue funds to boost employmentIn the long and winding road of Greek debt drama, disappointment and hope have been the alternating emotions that every government has faced. With the nation’s crisis no nearer to being resolved than when it erupted seven years ago, negotiations with creditors at another critical juncture and Europe engulfed in uncertainty, the need for hope has never been greater.“What Greece needs is a shock of growth,” the country’s deputy prime minister Yannis Dragasakis told the Guardian ahead of a crucial cabinet meeting on Monday. “We will meet to discuss a new growth strategy that will focus solely on boosting investment and reducing unemployment to pre-crisis levels, that is to say 8% in the next 10 years.”Related: Greek debt: will EU and IMF finally offer light at the end of the tunnel? Continue reading...

Chancellor will say UK economy is in far better shape than forecast. What he won’t say is inflation rates rise faster for the poorWhen Philip Hammond stands up to give his budget on Wednesday, this is what you are likely to hear: economic growth has been, and will be, stronger than expected after the Brexit vote. Defying all the doomsayers who said a vote to leave could prompt a recession, consumers carried on spending and businesses continued to expand.The picture for the public finances is also looking rosier compared with Hammond’s maiden autumn statement in November. Back then, the fiscal watchdog, the Office for Budget Responsibility (OBR), overhauled its forecasts to show that the impact of the Brexit vote on the economy would force the government to borrow £122bn more than hoped over coming years. Less than four months on, healthy tax receipts mean the government has not borrowed as much as previously feared to fund its spending over this financial year.Related: The budget 2017: seven things that we already know will happen …Related: Philip Hammond vows UK will fight back if it gets bad Brexit deal Continue reading...

Chancellor tells EU that Britain won’t ‘slink off like a wounded animal’ if no trade agreement is struck during article 50 talksPhilip Hammond has sent a warning to Britain’s European partners that Britain will “fight back” and not “slink off like a wounded animal” if it does not get the Brexit deal it wants.In combative language ahead of triggering the article 50 negotiations on terms of withdrawal, the chancellor said Britain would “do whatever we need to do” to be competitive in the event of leaving the EU without a trade agreement.

Britain’s negotiations to leave the EU look set to take place against a buoyant global economy and amid optimism over jobs and wagesAnyone who voted to stay in the EU should turn away now. There is disturbing news from far-off continents that could prove upsetting. The news is that Britain’s negotiations to leave the EU will take place against the backdrop of strong global growth. Such is the magnitude of this turnaround from the wobbles of 2015 that it could save the Tory administration from the inevitable cuts or extra borrowing that would follow a stagnating economy.We are not talking about a Trump-inspired dash for growth, although the US president is part of the story. The underpinnings for a year of high employment and solid wage growth across the globe are survey figures showing the largest improvement in worldwide manufacturing business conditions for more than five-and-a-half years. Continue reading...

The Crash of 1929 was an apocalypse, Northumbrian towns were worse than those in occupied France and even the Times admitted there was great povertyPope Pius XI said that the Great Depression of the 1930s was “the worst calamity that has befallen man since the Flood”. Such pronouncements might be expected from the Vatican, but apocalyptic language became commonplace during the “devil’s decade”.The writer and critic Edmund Wilson likened the crash of the US stock market in 1929 to “a rending of the Earth in preparation for the Day of Judgment”. The economist John Maynard Keynes suggested that the world in the grip of the economic blizzard was entering a new dark age that would last a thousand years. The French premier Léon Blum was one of many who compared the Depression to Armageddon, declaring that its effects were as traumatic as those of the first world war. The poet Edwin Muir described the army of unemployed as “the dead on leave”. Continue reading...

Combined TV, film and music industry grew almost 11% in second half of 2016, underpinned by digitally savvy UK consumersAt a time when the British economy is looking for leadership, step forward Darth Vader, Adele and Queen Victoria. One of the reasons GDP growth has stayed robust since the EU referendum is the UK’s creative sector, which has produced buoyant box office receipts thanks to Star Wars, healthy sales of Adele’s latest album and global demand for homegrown TV productions such as Victoria.The combined UK film, TV and music industry boomed in the second half of last year, growing almost 11% compared with the previous six months, according to government figures. In December alone, the film sector accounted for half of all growth in the key services sector – which accounts for 80% of the British economy – because of box-office takings from UK-made Rogue One: A Star Wars Story and JK Rowling’s Fantastic Beasts and Where to Find Them. Continue reading...