Industry bodies react to Spring Statement 2018

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Yet Dickinson believes the government needs to look more widely than simply focusing on digital tax, instead looking across all elements of business taxation.

The UK government will negotiate a Brexit that delivers prosperity and jobs, Hammond said.

While UK Music said it welcomed the decision to bring the evaluation period forward a year, its chief executive Michael Dugher argued that the proposals fell short of the kind of wide review the organisation say is needed in order to aid the UK's music industry.

"Existing plans alone are not enough", he added.

It will also announce how some of the £190mln will be spent on improving full-fibre broadband.

If in the autumn the public finances continued to reflect the improvements outlined on Tuesday, he said the government would "have capacity to enable further increases in public spending and investment in the years ahead".

He said he expects inflation to fall back to the Bank of England's target level of 2 per cent in 2018.

Average GDP growth is expected to be 1.4% a year over the next five years, unchanged since November, the OBR said.

Government borrowing will be £45.2 billion this year - some £4.7 billion lower than predicted in November and £108 billion lower than in 2010. But the structural deficit is nearly unchanged in 2019-20.

The OBR is an independent public body that provides the United Kingdom government with economic predictions, including borrowing and growth forecasts.

Gross domestic product (GDP) is projected to grow 1.5 percent this year, Chancellor of the Exchequer Hammond said, hiking prior guidance of 1.4 percent thanks to increasing productivity and the strong world economy.

UK GDP expanded by 1.7 per cent in 2017, the previous forecast had been 1.5 per cent.

Another £1,000 allowance also relates to property - for example if you rent out a room in your home on a site like AirBnb. It is then set to "accelerate" to 1.4% in 2021 and 1.5% in 2022.

The Office for Budget Responsibility's spring report shows that Philip Hammond's upbeat statement that there is "light at the end of the tunnel" for the United Kingdom economy after years of austerity is based nearly entirely on an improved global economy rather than any domestic improvement. And with some, but not much, good news on slightly lower borrowing and higher growth this year, the swift format meant it could take centre stage without being spread too thin. Wages of the lowest paid are up by nearly 7%, he added.

Philip Hammond's Spring Statement was characterised by risky complacency and offers no light at the end of the tunnel for families across the country, according to Positive Money Executive Director Fran Boait.

Nonetheless, she also cautioned that economic growth in the United Kingdom remains "lukewarm" and that it was important for government to address this.

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