Samuel Tombs, chief UK economist at Pantheon Macroeconomics, says despite the fact that chancellor Philip Hammond has downgraded its GDP growth forecast this year to 1.2% from 1.6%, it expects this shortfall to be made up in future years.

"Its forecast for cumulative growth over the next five years hasn’t changed.

"Accordingly, we think that a turning point has been reached: fiscal policy no longer will dampen the economy, strengthening the case for the MPC to raise interest rates shortly after the economic disruption created by Brexit uncertainty has faded," he says

Image source, Getty Images

The Federation of Small Businesses is pleased the government is to act against late payments.

The Office for Budget Responsibility says the Government’s stated "fiscal objective" is to balance the budget by 2025-26.

"Past forecast performance suggests that it now has a 40% chance of doing so by the end of our forecast in 2023-24%".

But, the OBR says, the medium-term outlook is uncertain because the ageing population is likely to be putting increasing upward pressure on spending and because of the potential impact of different Brexit outcomes.

Image source, AFP

A bit more from John McDonnell in reaction to the Spring statement.

The shadow chancellor said downgrading forecasts were a "pattern" under Mr Hammond before he criticised Government borrowing.

"On the deficit, he's boasting about the deficit - he's not eliminated the deficit as we were promised by 2015.

"He's simply shifted it on to the shoulders of headteachers, NHS managers, local councillors and police commissioners and, worst of all, onto the backs of many of the poorest in our society.

"The consequences are stark - infant mortality has increased, life-expectancy has reduced, and our communities are less safe."

Mr McDonnell also criticised the additional funding announced for the police, saying police budgets have been cut by £2.7bn since 2010.

The Office for Budget Responsibility (OBR) says its forecast for the economy has been produced against the backdrop of "considerable uncertainty over the next steps in the Brexit process".

"With discussions in Brussels continuing and Parliament scheduled to vote on various Brexit-related questions in the week of the Spring Statement, we have no meaningful basis for changing the broad-brush assumptions that have underpinned our forecasts since the referendum.

So we continue to assume – consistent with government policy at the time we finalised our forecast – that the UK makes an orderly departure from the EU on 29 March into a transition period that lasts to the end of 2020."

If the figures weren't enough, then here's two graphs for you on borrowing and growth so far this year, courtesy of the Office for Budget Responsibility.

Enjoy!

Image source, OBR

Image source, OBR

Mr Hammond said the government will publish a National Infrastructure Strategy alongside the Autumn Budget. Chris Brown at Norton Rose Fulbright thinks an infrastructure investment bank is needed.

Shadow chancellor John McDonnell is now responding to Philip Hammond's statement.

He's not holding back.

"We have just witnessed a display by the Chancellor of this Government's toxic mix of callous complacency over austerity and ... mishandling of Brexit," he says.

Image source, AFP

The chancellor says the government will make available immediately to police forces in England an additional £100m over the course of the next year.

The fund will be ring-fenced to pay for additional overtime targeted specifically on knife crime and to fund new Violent Crime Reduction Units to deliver a wider cross-agency response to this epidemic, he says.

Philip Hammond describes the recent surge in knife crime as a "personal tragedy for the scores of families of victims".

Image source, Getty Images

Chancellor Philip Hammond says the government will fund the provision of free sanitary products in secondary schools and colleges in England from the next school year.

The move comes after schools have complained some children are missing school due to a lack of sanitary products.

The chancellor says the government plans to look into whether planes should be required to offer genuinely additional carbon offsets "so that customers who want “zero carbon travel” have that option… …and can be confident about additionality," he says.

Chancellor Philip Hammond has just pledged a new £3bn "Affordable Homes Guarantee scheme", aimed at supporting delivery of around 30,000 affordable homes.

Image source, Getty Images

A six month review of the tech sector published earlier today concluded tech giants like Facebook and Google should face greater competition.

The review was led by Barack Obama's former economic advisor, Jason Furman.

Chancellor Philip Hammond says as a "first step towards implementing reforms", he will ask the the Competition and Markets Authority to undertake a market study of the digital advertising market as soon as possible.

"The UK will remain a great place to do digital business… …but it will be a place where successful global tech giants pay their fair share… …where competition policy works in consumers’ interests… …and where the public are protected from online harms," he says.

Image source, Getty Images

The chancellor has announced that from June the UK will begin to abolish the need for paper landing cards at UK points of entry.

"We will allow citizens of the USA, Australia, New Zealand, Canada, Japan, Singapore and South Korea to use e-gates at our airports and Eurostar terminals, alongside the EEA nationals who can already use them," he says.

Image source, Getty Images

Chancellor Philip Hammond says the government's £37bn National Productivity Investment Fund will help boost productivity.

The UK's perennial productivity issue is constantly blamed for holding back growth.

Mr Hammond says the fund - previously announced - represents "the largest ever investment in England’s strategic roads; the biggest rail investment programme since Victorian times; and a strategy for delivering a nationwide full fibre network by 2033."

Image source, Reuters

The chancellor says he is confident that despite last night's setback, MPs will eventually agree a Brexit deal.

"I am confident that we, as a House, will do it over the coming weeks. Leaving with “No Deal” would mean significant disruption in the short- and medium-term… …and a smaller, less prosperous economy in the long-term, than if we leave with a Deal.

"Higher unemployment; lower wages; higher prices in the shops. That is not what the British people voted for in June 2016," he says.