Speaking ahead of annual budget speech
UK Chancellor of the Exchequer Phillip Hammond said on Sky News on Sunday morning that"
- UK will need new tax and spending plans and may have to extend austerity policies if it fails to secure a deal with the EU
- We would take appropriate fiscal measures to protect the economy, to prepare us for the future and to strike out in a new direction that would ensure that Britain was able to succeed whatever the circumstances we found ourselves in.
- The Bank of England may also need to take action through a change in interest rates
Hammond is to give his annual budget speech tomorrow at 1530 GMT/10:30 AM ET. PM May has directed Hammond to find an extra 20B pounds a year for the national health service, and declared an end to austerity (from her party conference speech). It was reported that he will direct money for adult social care and the armed forces. He also hinted of injecting more cash into the new welfare system.
Meanwhile the Brexit clock continues to tick and plans can go up in smoke depending on the results.
PS the budget is the first one given on a Monday since 1962. The speculation is that Hammond choose the date since the typical day is Wednesday. That happens to be October 31 or Halloween. The speculation is that perhaps the date was chosen to avoid cheeky Halloween headlines from the tabloids. How could they not resist?
