UK’s budget deficit plans ‘not credible’

FINANCE: Chancellor Philip Hammond’s goal of eliminating the budget deficit and balancing the books has “no credibility” and should be abandoned, MPs have said.

The cross-party Commons Treasury Committee said it was clear it was no longer Government policy to aim to run a surplus.

UK ECONOMIC growth slowed in the final quarter of last year as car manufacturing declined at its steepest rate in just under a decade.

Gross domestic product (GDP) growth fell to 0.2 per cent between October and December, according to the Office for National Statistics (ONS). This compares to 0.6 per cent growth in the previous quarter, when warm weather and the World Cup contributed to a boost in economic activity. Meanwhile, annual GDP increased by 1.4 per cent, the weakest it has been since 2009. Sterling tumbled following the news, dropping 0.4 per cent versus the US dollar to 1.28. Against the euro, the pound was down 0.1 per cent at 1.14.

Car production was down 4.9 per cent in the period.