Philip Hammond will honor the end of Savings on Monday in his third budget, but warns Eurosceptics that a brighter…
Philip Hammond will honor the end of Savings on Monday in his third budget, but warns Eurosceptics that a brighter future of tax cuts and higher public spending will be destroyed if Britain does not ensure a good Brexit deal.
Hammond, which is sustained by an unexpected increase of more than SEK 13 billion with higher than expected tax revenues, will lose public spending cranes with more money for strenuous public services, including another 2 billion kronor per year for mental health.
However, the chancellor insists that while the end of a decade of tightening was “in sight” was very dependent on whether Theresa May could deliver a resignation agreement with Brussels that held trade free between Britain and the EU.
Hammond will tell MEPs if major decisions on public spending can only be made when a Brexit deal is in place. “Our approach is based on an agreement made with the EU on reasonable terms,” Hammond says to Sky’s Sophy Ridge.
“If we do not get an agreement, we would have to take a different attitude towards the future of Britain’s economy,” he said. “We would have to look at another strategy and, frankly, we would need a new budget setting a different strategy for the future.”
Mr Hammond will use his budget to turn Tory Eurosceptics screws to back Mrs Mays compromise plan, agreed with her checkers at Checkers in July, which would keep Britain close to the EU Customs Union and Internal Market.
The Chancellor will argue that a Checkers-style agreement would create a “return return” in two ways: Official growth forecasts would be upgraded while he would also be able to spend some of the 1
5 billion dollars held in reserve as a “buffer” against an odd Brexit.
The budget will lead to a delicate way of committing Mrs May to her demand for higher spending now under number 10 as crucial to protect creaking public services – and holding back major decisions until after Brexit.
With an additional £ 13 billion a year to play with upgrading tax budget forecasts from the Byrån for budgetansvar – Hammond will be able to fund some of the government’s priorities.
The biggest part will be to meet Mays promise to spend an extra £ 25 billion on NHS 2023, while Hammond will increase the mental health investment by 2 billion kronor that year.
Special crises for children and younger people will be established around the country, a 24-hour auxiliary line for anyone experiencing a mental crisis will be established and there will be more mental health specialist ambulances.
There will be a significant package for infrastructure aimed at increasing the UK’s leading capacity, including broadband support and an increase of 44 percent on highways and other major roads from 2020-2025.
Hammond will also announce new state aid for research and development in the automotive industry – even in the development of electric cars – and in digital manufacturing.
Other government pressures will be addressed, including providing more money to reduce the worrying expansion of universal credit, the government’s flagship policy.
And there will be some emergency funding for the Department of Defense to compensate for a lack of equipment procurement, although wider spending decisions for the future will be postponed to next year.
Hammond confirmed that he would “set” overall spending plans for the next five years in his budget, but that detailed departments in total and a final “envelope” for expenses would only be inserted when the last Brexit settlement was clear.