There: I thought that would draw you in. What does it have to do with the UK economy though?
Well, last week, the UK Chancellor presented the Government’s 2014 Budget. The annual Budget report and statement in Parliament offers an opportunity to take stock of the economic outlook and public finances, while making some policy announcements.
The Office of Budget Responsibility (OBR) – the UK’s independent fiscal watchdog – upgraded its forecast for economic performance in the near-term. GDP is expected to grow by 2.7 per cent in 2014 and then 2.3 per cent in 2015. Employment, which has already more than surpassed its pre-recession peak, is expected to keep on growing.
With slightly stronger growth, the OBR revised down its projections for the deficit. The Government continues to work to bring down its borrowing requirement. In 2010 the deficit was 11 per cent of GDP; this year it will be down by a third. Debt will peak lower than previously expected.
Alongside the updated forecasts, the Chancellor announced a higher tax free allowance, the latest in a series of increases that will lift 3 million people out of tax altogether. There is support for exporters (a doubling of the finance available for exporters entering new markets); guarantees for crucial infrastructure investment; additional funding for apprenticeships; and investments in science and innovation.
And there is also beer. The Chancellor cut the duty on a pint of beer by a penny, the second year it’s been cut in a row. It may sound small, but Brits do like a pint (and so do Washingtonions judging by the number of IPAs on offer around DC). More seriously, there are 1,100 breweries in the UK, according to the Beer and Pub Association. And in light of the reduction in duty, Marston’s – an independent brewery and owner of around 2,000 pubs – has announced 3,000 new jobs throughout the UK.
An announcement we can all raise a glass to.