UK chancellor of the exchequer Philip Hammond will make his first set-piece speech in office on Wednesday, offering modest giveaways for "just about managing" families that are expected to be overshadowed by difficult economic forecasts.
In the autumn statement, the chancellor is expected to confirm a ban on letting fees for millions of families who are being charged hundreds of pounds by agencies to cover the supposed administrative costs of renting.
This will be accompanied by a softening of cuts to the universal credit welfare system and a package of support to encourage the construction of 40,000 new, affordable homes.
Mr Hammond is also expected to announce an increase in the “national living wage” from £7.20 to £7.50 an hour from April 2017, although this is slightly below the £7.60 figure that the independent Office for Budget Responsibility estimates would be necessary for it to stay on course to match the pledge of £9 an hour by 2020.
Weaker forecasts
However, the modest measures for “just about managing” families, known as “Jams”, are expected to be accompanied by sharply weaker forecasts for GDP growth and the public finances.
Predictions from City forecasters suggest that economic growth will slide from about 2 per cent this year to little more than 1 per cent in 2017.
Meanwhile, the credit ratings agency Moody’s said that Jams may find themselves unable to service their car loans and mortgages as a result of rising inflation caused by Brexit.
Sources said the chancellor was likely to spend Tuesday evening at No 11 putting the finishing touches to his speech, having moved into the Downing Street flat less than a fortnight ago.
Hammond's speech will start at 12.30pm after prime minister's questions, and is likely to be significantly shorter than those of his predecessor, George Osborne.
Fiscal measures
The so-called red book of fiscal measures will also be slimmer, reflecting a desire to focus on broad-brush headline measures rather than micromanaging departmental spending.
Ahead of the speech, Mr Hammond has spoken to more than 100 businesses and organisations to get a sense of their perspective on the post-referendum economy.
His big theme on the day will be boosting spending on infrastructure and productivity, as well as the string of small measures to help Jams.
Other measures due to be confirmed in the speech are a boost to broadband investment and billions for road infrastructure to ease traffic congestion.
After the speech, David Gauke, the chief secretary to the Treasury, will be sent out onto the airwaves to explain the overarching points of the statement. He is a veteran of the Treasury and was often used in a similar way by Osborne after big announcements.
– (Guardian service)
