UK Budget Preview: Sticking to the targets - TDS

Analysts at TDS point out that as the UK government transitions from spring budgets to autumn budgets this year, this week sees Chancellor Philip Hammond present his second budget of the year.

Key Quotes

“The Chancellor is likely to stick closely to his fiscal targets. While downward revisions to longer-term economic forecasts will pose some challenges to fiscal policy, we expect near-term borrowing plans to remain largely in line with the Spring Budget.”

“We expect to see gross Gilt issuance to be around £120bn in FY18/19 as compared to £114bn for the FY17/18. Strong demand for ultra long Gilts from PFs/LDI investors, suggest that we could see some increased issuance in this sector.”