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PIMFA WEEKLY NEWS BULLETIN | 1 November 2021 Dear Nigel,
Welcome to the PIMFA Bulletin; grab a coffee and take 10 minutes to read the latest news impacting you and your firm.
Autumn Budget and Spending Review
This week’s Autumn Budget set out a long-term economic plan for the country. It was the first multi-year Spending Review since the COVID-19 pandemic and since the UK left the European Union (EU). The Chancellor painted a positive picture of the UK economy, encouraged by Office for Budget Responsibility (OBR) forecasts which were revised up and predicted GDP would grow by 6.5% in 2021/22 – up from 4% predicted in March this year. While inflation is forecast to rise to 4% over the next year, the stronger than expected recovery means borrowing as a percentage of GDP is expected to fall from 7.9% this year to 3.3% next year. The UK economy is forecast to return to pre-Covid levels by 2022. Regardless of the upbeat nature of the Chancellor’s speech, there was a underlying note of caution illustrating the Chancellor's desire to position himself as fiscally responsible. The levelling-up agenda was prominent in the statement, with extra funding going to Scotland, Wales and Northern Ireland. The Government is putting strong emphasis on a high-skilled, high-wage economy, with the Chancellor saying that “high skills lead to higher productivity,