Hammond stressed that even if Great Britain leaves the EU without a proper deal, he would still be able to keep control of public funds.
He said, “I hoped to do it last night, but I’m convinced that we, like a home, will do it over the next few weeks.”
Prime Minister Theresa May’s plan was dropped again Tuesday, meanwhile it remains only two weeks from the date set for Brexit.
In his communication, Hammond stressed: “Undisturbed removal would mean significant short-term and medium-term cuts and a smaller and less prosperous economy over the long run than if we run out of a deal” Hammond said to parliament, warning unemployment and higher prices and lower wages to a Brexit without agreement.
“This is not what the British voted in June 2016,” he said.
Lawmakers are expected to vote later on Wednesday against a departure from the European Union without a transitional agreement, then vote Thursday to demand a delay for Britain’s departure, currently scheduled for March 29.
In October, Hammond issued his full budget statement for public funds even though in that period the forecasts for the British economy were sluggish. And in the new half-year fiscal forecasts showed that Hammond had the right, Britain’s public finances are in the form of good.
In spite of the slowdown in economic growth, Britain has been able to mark the lowest rate of unemployment since 1970. This is due to strong tax receipts of revenue and management and budget upgrading.
From a preliminary estimate, Hammond had estimated 15.4 billion pounds of savings from additional spending cuts or tax cuts. But he said he now had a figure of about 26.6 billion pounds, to be made available to the British economy in the case of Brexit.
Hammond also reiterated that he believes there may be a “dividend” from where company trust can be regained. And in this way he could choose between increasing spending on public utilities, capital investment and keeping low taxes, meanwhile which reduced the debt.
However, independent UK budget forecasters said that almost half of Hammond’s fiscal hall could be lost, depending on how official statistics treat student loans in public accounts.
After numerous murders at the high level, Hammond said there was almost a 100 million pound sum to assist police in the fight against crime.
Britain’s parliament rejected the plan to cut taxes and luxury services in January and again Tuesday. Hammond, however, does not pull out of his prediction by repeating it again.
According to official forecasts, although Britain’s economic growth for this six-month period would be sluggish again, the budget deficit would be smaller by rejecting forecasts made in October. Hammond said.
Forecasts were produced by the Budgetary Bureau, Britain’s budget supervisor, and assumed Britain would leave the EU with a deal./investing.com
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