Pound LIVE: Spring Statement - Pound rises as Hammond comes out fighting
THE POUND has responded positively to Chancellor Philip Hammond’s Spring Statement as it is currently up against most major currencies.
21.51 - UPDATE - Pound still feeling the positives off todays Spring Statement
The pound is still up off the back of todays Spring Statement delivered by Chancellor Philip Hammond. The pound is up 0.4 percent against the dollar to 1.3693 and 0.01 percent against the euro to 1.1269.20.23 - UPDATE - Tillerson firing helps pound against dollar
The pound has been given a boost against the dollar due to the firing of Rex Tillerson. This was the second high profile firing to take place in the White House in March.
This raised the pound above the dollar.
Neil Jones, Head of Corporates & FIG at Mizuho Bank told Pound Sterling Live that “The Trump firing of Tillerson is giving GBP a further boost on the back of a general US Dollar sell off.”
The pound is currently 0.42 percent up againat the dollar to 1.3695.
16.52 - UPDATE - Pound still on the rise
The pound is 0.1 percent up against the euro and 0.6 percent up against the dollar.
AFTERNOON HEADLINES
The Spring Statement has been well received as the pound is rising against both the euro and the dollar.
It is up by 0.05 percent against the euro to 1.1274 and 0.51 percent against the dollar to 1.3978.
The tone of his statement was one of cautious optimism, with positive stats but the full effect of brexit is yet to be seen.
Mr Hammond also used this opportunity to announce a £80million boost to smaller businesses to employ apprentices.
Something smaller businesses have responded positively to.
Steven Gee, CEO Close Brothers Asset Finance said: “This should act as a reminder of the benefits that apprentices can bring to SMEs in all sectors, particularly those struggling with succession planning and finding people with the right skills that they need for their businesses.
Spring budget is expected to include impact of Brexit bill
10.00am MORNING HEADLINES
Good morning, and welcome to our rolling coverage of Pound Sterling, British business, the eurozone, the world economy and the financial markets.
Although no fiscal fireworks are expected from Philip 'box office' Hammond this afternoon, there should be some good news for the UK economy in the form of a revised GDP forecast and deficit reduction.
Read the full report here.
Fiona Cincotta, Senior Market Analyst at city Index told Express.co.uk that with no tax or spending announcements, the potentially most interesting area to watch will be the updated OBR economic and public spending forecasts.
She said: "These figures could provide some volatility for pound; however, this could be minimal as no major surprises are expected. UK GDP is expected to come in at 1.7 percent marginally higher that the 1.5 percent forecast by the OBR back in the Autumn.
"Public spending is expected to have fallen to around £43 billion as Hammond will have to fight off calls to rack up spending to help Britain through Brexit."
The Pound is down 0.06 percent against the Euro to 1.1261, and down against the Dollar 0.17 percent to 1,3884.
Updates below throughout the day....
2.15pm - UPDATE - Spring statement overview
Yael Selfin, Chief Economist at KPMG says that with the second half of last year showing stronger momentum for the UK economy, and outcomes for public finances also more positive than the OBR had pencilled in, some upward revisions by the OBR were always on the cards ahead of the Spring Statement.
He said: "In the event, the OBR chose to make only a very minor increase to this year’s growth forecast, preferring instead to reserve judgment before taking the rise in productivity over the second half of 2017 as an indication of a more lasting change. OBR forecasts for public finances were more positive, with debt now expected to fall to 77.9 percent of GDP by 2022-23.
“Nevertheless, the Chancellor was in a positive mood, placing his faith in the UK economy, and laying the ground for further investment to improve productivity over the coming years. He also recognised that helping management improve the performance of the companies they lead could make a big difference.
"Similarly, simplifying incentives, and providing a stable business environment can go a long way to encourage businesses to invest more, as well as make it easier for business to select and implement the type of investment that will boost performance most. We will hopefully hear more on that in the November Budget.”
Hammond delivers the OBR's forecast in Spring Statement 2018
1.45pm - UPDATE - Reaction
Hannah Maundrell, Editor in Chief of money.co.uk has reacted to the Spring Statement:
“The chancellor put a positive spin on the future of our economy, but his focus was very much on the big picture. The pressures of day to day living aren’t so encouraging for the many households struggling to get by.
“There’s little doubt rising inflation has taken its toll on people’s purse strings. However, that’s just the tip of the iceberg; the real reason many households are nearing financial crisis is because they’re shelling out a significant amount in debt repayments each month, leaving them with little to play with.
“This is an issue that needs addressing from the top as well as by people at home. If you’re struggling to make ends meet, take the chancellor’s advice."
1.13pm - UPDATE - Pound soars against Dollar
The Pound is now up 0.43 percent against the Dollar to 1.3967.
Philip Hammond is on the offensive during his Spring Statement. Read the full report here.
12.28pm - UPDATE - Pound down ahead of Spring Statement
The Pound is flat against the Euro and Dollar.
Sterling is down 0.04 percent against the Euro, and down 0.02 percent against the greenback.
11.27am - UPDATE - Chancellor called to scrap business rates
John Cooke, Managing Director of Black Pepper Software Ltd said: “In my opinion, the Chancellor should scrap business rates all together and replace them with a revenue neutral way tax on company revenue.
This would give struggling small businesses a boost and rebalance the tax burden against large companies. It would also go some way to redress the balance of tax on those large global businesses, such as Amazon, Google and Starbucks, who shift their profits abroad to avoid paying tax in the UK.
10.29am - UPDATE - Pound rises against Euro
The Pound is now up against the Euro a very thin 0.2 percent to 1.271.