There is a dark cloud casting a long shadow across the Chancellor’s Budget numbers. The spectre of Brexit is looming large now on the prospects for the economy and public finances.
Businesses are holding back on investment because of the uncertainty about trade and tariffs, which in turn is holding productivity down. If we cannot generate more output per hour worked, living standards will stagnate. As a consequence, the Office for Budget Responsibility downgrade for future growth prospects means the days of 2 per cent growth rates may be a thing of the past.
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