{"id":87492,"date":"2017-12-20T11:17:36","date_gmt":"2017-12-20T11:17:36","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=f2a8b62fb40236a48fa935a3d9699159"},"modified":"2017-12-20T11:17:36","modified_gmt":"2017-12-20T11:17:36","slug":"speech-imf-article-iv-press-conference-chancellors-opening-remarks","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=87492","title":{"rendered":"Speech: IMF Article IV Press Conference: Chancellor’s opening remarks"},"content":{"rendered":"
\n

I am delighted to welcome Christine Lagarde back to the Treasury this morning (20 December 2017), to present the conclusions of the IMF\u2019s annual Article IV assessment of the UK economy.<\/p>\n

I had the pleasure of meeting the team during their visit and I thank them for their work.<\/p>\n

The assessment plays an important role in providing independent scrutiny of our economy, and valuable challenge and support for our economic policymaking.<\/p>\n

And this year\u2019s assessment comes at an important juncture for the UK economy.<\/p>\n

At my recent Budget<\/a> I reported on an economy that continues to grow\u2026<\/p>\n

\u2026that has delivered the lowest unemployment in 40 years\u2026<\/p>\n

\u2026and that continues to confound those who seek to talk it down.<\/p>\n

But there are many challenges we need to address if we are to tackle low productivity growth and go on raising living standards\u2026<\/p>\n

\u2026to deliver a new partnership with our European neighbours that supports jobs and prosperity\u2026<\/p>\n

\u2026to seize the opportunities of the rapid technological change that is going on across the world\u2026<\/p>\n

\u2026and build a Britain that is fit for the future.<\/p>\n

And today\u2019s IMF report identifies some challenges, and potential solutions, for building this stronger economy.<\/p>\n

First, the IMF urges us to go on rebuilding our fiscal buffers against future shocks.<\/p>\n

We\u2019ve made good progress in repairing our public finances and reducing the highest budget deficit in our peacetime history by three quarters, to 2.3%.<\/p>\n

But at 87% of GDP our debt is still too high, and so we remain committed to our fiscal rules, which are set to see debt falling next year.<\/p>\n

And I welcome the IMF\u2019s endorsement of our fiscal plan – which takes a balanced approach to reducing the deficit and investing to raise productivity.<\/p>\n

Second, the IMF highlights the significant productivity challenge that the UK economy faces.<\/p>\n

This is a common challenge across advanced economies, but the gap between UK productivity and the rest of the G7 has widened.<\/p>\n

When I took this job, I made it the central mission of the Treasury to tackle this challenge head-on.<\/p>\n

And since the last Article IV assessment I have established, and expanded, the National Productivity Investment Fund to deliver over \u00a331 billion of investment targeted at transport, broadband, science and innovation.<\/p>\n

In my Autumn Budget<\/a> I took action to put the UK at the forefront of the technologies of the future\u2026<\/p>\n

\u2026investing over \u00a3500 million in artificial intelligence, 5G, and driverless and electric vehicles<\/a>.<\/p>\n

We\u2019ve launched radical reforms to our technical education system, to give people the skills they\u2019ll need to thrive in a modern economy.<\/p>\n

And I was pleased to see the IMF recognise that alongside our prudent management of the public finances\u2026<\/p>\n

\u2026public investment is set to rise further over the medium term\u2026<\/p>\n

\u2026reaching its highest sustained level in forty years.<\/p>\n

Third, the IMF note the regional disparities in productivity within the UK.<\/p>\n

And it is true that if we are to build an economy that is fit for the future\u2026<\/p>\n

\u2026then we have to get all parts of the UK firing on all cylinders\u2026<\/p>\n

\u2026and our modern Industrial Strategy<\/a> sets out our long-term plan to boost productivity throughout the UK.<\/p>\n

The IMF recommend a greater role for local decision making, to better tailor policies to economic conditions.<\/p>\n

We are devolving powers to elected mayors across the country\u2026<\/p>\n

\u2026and at the Budget I announced a new \u00a31.7 billion Transforming Cities Fund<\/a>\u2026<\/p>\n

\u2026half of which will go to the six areas with elected metro mayors\u2026<\/p>\n

\u2026to deliver better transport connections across our regional cities.<\/p>\n

Finally, the IMF recognise the potential of Brexit to reshape the structure of the UK economy.<\/p>\n

\u2026and they welcome the progress we have made in the negotiations so far.<\/p>\n

The UK and the EU have shown what can be achieved by commitment and perseverance on both sides\u2026<\/p>\n

\u2026and we are well on the way to delivering a Brexit that protects jobs and prosperity\u2026<\/p>\n

\u2026and prepares Britain for the opportunities ahead.<\/p>\n

As the negotiations with the EU enter the second phase\u2026<\/p>\n

\u2026it is imperative that we move on with discussions to secure a smooth and orderly withdrawal from the European Union.<\/p>\n

The IMF report notes that \u201cearly agreement on a transition period would avoid a cliff edge exit in March 2019 and reduce the uncertainty facing firms and households\u201d.<\/p>\n

I agree.<\/p>\n

One of the biggest boosts we can provide to the economy\u2026<\/p>\n

\u2026of both the UK and the EU\u2026<\/p>\n

\u2026is making early progress on delivering certainty and clarity about our future relationship\u2026<\/p>\n

\u2026with a time-limited implementation period agreed at the earliest opportunity\u2026<\/p>\n

\u2026when we have left the EU and therefore will be outside the EU Customs Union and the Single Market\u2026<\/p>\n

\u2026but during which we will replicate the effects of the Customs Union and the Single Market\u2026<\/p>\n

\u2026with reciprocal access to each other\u2019s markets\u2026<\/p>\n

\u2026and a harmonised customs arrangement, ensuring a low friction border.<\/p>\n

Giving businesses continuity, and certainty, to plan and invest with confidence.<\/p>\n

I\u2019ll end my remarks there, and finish by thanking Christine Lagarde and the IMF for their continued scrutiny and support.<\/p>\n

As ever Christine, we value your advice and look forward to studying the conclusions of your report in more detail when it is published in the Spring.<\/p>\n

I now hand over to Christine Lagarde who will introduce the report and answer your questions.<\/p>\n

Thank you.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Chancellor of the Exchequer Philip Hammond’s remarks at the IMF Article IV Press Conference.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/87492"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=87492"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/87492\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=87492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=87492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=87492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}