The Chancellor of the Exchequer delivered his 2011 Autumn Statement to Parliament at 12:30pm on 29 November 2011.
This is the Office for Budget Responsibility’s economic and fiscal outlook. It sets out forecasts for the economy and the public finances.
- UK Households spent an average of £474 per week in 2010
- The largest expenditure categories were transport, housing (excluding mortgages) fuel and power, and recreation and culture.
- There were five regions in which expenditure over the period 2008-2010 was higher than the UK average: London, South East, East , South West, and Northern Ireland.
- Households in rural areas had higher overall expenditure than those in urban areas.
- The ownership of consumer durables continued to increase into 2010
- GDP growth was 0.5 per cent in the third quarter of 2011. Although this is a more solid pace of
growth than in recent quarters, growth over the year has also been 0.5 per cent, so an average of
just over 0.1 per cent in each quarter, and an average of 0.3 per cent over the last two quarters.
Although the economy continues to expand, it is at a relatively modest pace, particularly compared
to the stronger pace of growth observed in the middle of 2010, and compared to recoveries from the
previous two recessions in the early 1980s and early 1990s.
- The labour market appears to be reflecting the weakness of economic activity more closely now,
with unemployment rising and employment levels and rate falling. Wage growth continues to be
subdued and well below CPI inflation.
- The ongoing deterioration in the trade balance, into September, indicates that the positive
contribution to GDP growth seen in the first quarter of 2011 has not been sustained, despite the
continued weak value of sterling.
- Inflation came down by 0.2 percentage points, to 5 per cent in October, reflecting primarily a decline
in food prices due to widespread supermarket discounting and good harvests for a range of fruit
Provisional estimates for current month
- a current budget deficit excluding the temporary effects of financial interventions of £4.5 billion in October 2011
- net borrowing excluding the temporary effects of financial interventions of £6.5 billion in October 2011
- net debt excluding the temporary effects of financial interventions was £966.6 billion, equivalent to 62.3 per cent of GDP