2016 Budget and the UK’s economic outlook

 

As the UK adjusts to the changes announced by the Chancellor in his 2016 Budget announcement, Adam Chester, considers the impact on businesses and takes a look at the broader economic outlook facing the UK.

Want to find out more? Download our Rapid Response podcast, featuring a discussion on the impact of the Budget between Adam Chester, Head of Economics and Thorsten Seeger, Head of SME Banking, Financial Markets at Lloyds Bank.

Watch the film

About the author

Adam Chester

Adam Chester is Head of Economics at Lloyds Bank Commercial Banking.

At a glance

  • A reduction in Corporation Tax and Capital Gains Tax is aimed at increasing capital for enhanced business investment.
  • Chancellor announces moves to support the Oil & Gas sector in the face of continued global pressures.
  • Productivity remains a key challenge for the UK economy and UK businesses and must be tackled in order to protect and create growth.
  • Investment in infrastructure across the UK seeks to drive further economic benefits for businesses.
  • Business confidence is at a two-year low, but financial markets have shown some signs of resilience.
  • Despite a globally uncertain economic outlook, the UK forecast remains strong, with anticipated GDP growth of 2–2.25% in 2016.

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