Philip Hammond says ‘let’s get match-fit’ for the opportunities Brexit will bring
Chancellor admits ahead of Wednesday's budget that economic uncertainty is to come but there's 'no point crying' about it
PHILIP HAMMOND says Britain must get "match-fit" for the opportunities that Brexit will bring.
As the Chancellor prepares to spend £5bn to boost the economy in the run-up to Brexit, he said that the economy was facing "a larger degree of uncertainty than usual" and he intended to make it "water-tight".
"We have a situation where business will face uncertainty for the next couple of years... There’s no point crying over that fact, we just have to plan to accommodate it," he told The Andrew Marr Show on Sunday morning, ahead of the Autumn Statement on Wednesday.
He said that although there was a"sharp challenge" to the public finances, his plans would "focus on making sure that our economy is match-fit for the opportunities and the challenges that lie ahead."
Britain must "have enough headroom to deal with any unexpected challenges over the next couple of years and most importantly, that we're ready to seize the opportunities of leaving the European Union," he said.
The Chancellor is expected to use the Autumn Statement on Wednesday to provide help for the 'JAMs' - those who are just about managing.
The Treasury also confirmed it would spend £1.3bn for investment in infrastructure such as roads.
The Chancellor said that it was clear that "inflation is back" and hinted that the Autumn Statement would contain some investments.
"This economy does need investment [but] it also needs us to maintain credibility with markets,"; he said.
"Anyone who tells you we can borrow without debt… is not telling you the truth. We need to do it… cautiously and considerately."
The Shadow Chancellor, John McDonnell, pressed Mr Hammond to abandon austerity politics on Wednesday, and that Labour would scrap giveaways for the rich.
"This is money coming out of the politics [of people] who are doing everything that is asked of them," he said during a one-on-one chat with his opposite number.
"Will you change direction?If you reverse the cuts to universal credit in full and... Employment Support Allowance... you'll have my support," he said.
Mr Hammond also was positive that the EU was finally beginning to wake up to the challenges of immigration, after the Prime Minister met with European leaders last week.
"There is a change around this debate going on in Europe, about migration and free movement as Europeans come to face the challenges," he told ITV's Peston on Sunday.
"We want the best trade access for our goods and our services but... the British people have clearly mandates us to regain control of our border, that is a political imperative that cannot be negotiated away."
The Chancellor attacked a group of 60 Tory MPs who are pressing Theresa May to exit the single market, and said they should back off.
"I'd urge my colleagues to give the Prime Minister the flexibility she needs to get the best deal for Britain in what will be a very complex negotiation."
He added: "We want European workers and European firms to have continued access to the UK's market."