UK: Focus on fiscal update - TDS

Analysts at TDS point out that UK Chancellor of the Exchequer Phillip Hammond will deliver the government's spring fiscal update at 12:30pm GMT and while past budget updates were often used to announce new tax and spend policies, Hammond plans a very restrained affair, with no new fiscal policies announced.

Key Quotes

“Instead, he will update Parliament with fiscal projections based on the new OBR economic forecast, and announce consultations on longer-term fiscal challenges that will be addressed in the Autumn Budget. Today's Statement will also see the first formal breakdown of the UK's "divorce payments" schedule to the EU, reported to be estimated at about £39bn. We look for the deficit this year and next to be revised down significantly, with Gilt issuance around £105-110bn for FY18/19 as compared to £115bn in FY17/18.”