The OBR revised up its growth forecasts slightly compared to those in the Autumn Statement, although this is only expected to be a temporary cyclical improvement. As a result, the headline budget deficit is projected to be slightly lower, but the underlying structural deficit has not changed. The chancellor therefore had little room for manoeuvre, but was able to find room for some positive support for exports, investment and savings, as well as higher personal tax allowances. Spending was cut further to pay for these giveaways, but the most important change was a move away from annuities for people taking their pensions.
