Budget 2017:
context not content

Important Information

We want to make investing with us simple and straightforward for all of our clients.

Please select your investor type from the options below.

Alternatively you can register or log in to an existing account.

Please note that by making your selection here you are agreeing to the Woodford Investment Management Ltd Privacy Statement and to our Terms and Conditions.

Neil Woodford 8 March 2017 Est. reading: 2 min read

The Budget was more interesting for its context than its content. There is an observable difference between Chancellor Hammond’s approach and that of his predecessor, George Osborne. Much of the austerity that had been embedded in Osborne’s plans has been stripped out – there is now more than £100bn of extra borrowing proposed over the next five years than there was in Osborne’s last budget.

Of some note is the £16bn ‘windfall’, which is the reduction in borrowing for this financial year compared to what was forecast in November – a product of the better economic performance of the economy than had been expected at the time. Although Hammond is proposing extra funding in areas such as education and social care, he isn’t spending all of the improvement – he is putting the majority of it to one side for a rainy day, or for later in the political cycle, whichever comes first.

This extra money that the Chancellor has been able to put to work, as we’ve said, results from the fact that the economy has been performing better than expected. The Office for Budget Responsibility has upgraded its growth forecast for the current year from 1.4% to 2.0%, which suggests it is coming around to our more benign view of the UK’s economic situation. We are more upbeat on the outlook for the UK economy than many commentators – the market consensus, in our view, has become too bearish in the aftermath of the Brexit vote. We are more positive on the outlook for the UK and, naturally, more positive about the outlook for some domestic stocks.

There are challenges ahead economically – not least, the public debt burden which, despite recent improvements, remains ‘eye-watering’ – but the UK economy is relatively well-placed to deal with them and we would expect the debt burden to start to diminish more quickly than the Chancellor has forecast, over the next five years.

Woodford Investment Management Ltd is authorised and regulated by the Financial Conduct Authority (firm reference number 745433). Incorporated in England and Wales, company number 10118169. Registered address: 27 Old Gloucester Street, London, WC1N 3AX.

© 2020 Woodford Investment Management Ltd.
All rights reserved.

Are you sure?

By disagreeing you will no longer have access to our site and will be logged out.

Privacy Preference Center

Experience Tracking

Lets our analytics service track you across our different websites and enables data sharing among our different marketing tools.

AMCV_[Tracker ID]@AdobeOrg (Adobe), [Tracker ID]@AdobeOrg (Adobe)
Adobe Analytics (helps us provide you with more relevant experiences and content based on your likely interests). Cookies: demdex, dextp, dpm, DST, DSTJS
Twitter personalisation (by better understanding how devices are related, Twitter can use information from one device to help personalize the Twitter experience on another device). Cookies: personalization_id
Heap Analytics (provides metrics on user behaviour and actions throughout the site). Cookies: _gid, _hp2_id.[Tracker ID],_hp2_props.[Tracker ID], _ga, _mkto_trk, optimizelyBuckets, optimizelyEndUserId, optimizelySegments, raygun4js-userid, _attribution_referrer, _csrf
Adobe Analytics (provides you with more relevant experiences and marketing messages based on your likely interests). Cookies: _tmae ,ev_sync_dd,ev_sync_yh,everest_g_v2,gglck

Traffic Metrics

Allows Woodford to aggregate information on website usage and popular content

_ga, _gid
Google Analytics (tracks and reports website traffic and user behaviour): Cookie: CONSENT
New Relic (application and server performance monitoring – allows us to spot problems with our website code and improve them to keep things running smoothly). Cookie: JSESSIONID
Adobe Analytics (provides you with more relevant experiences and marketing messages based on your likely interests). Cookies: __qca,__smToken, _ga, _mkto_trk, _rtbmedia

Search History

Populates the 'recent searches' section of the website navigation.


Close your account?

Your account will be closed and all data will be permanently deleted and cannot be recovered. Are you sure?