Philip Hammond plans emergency Brexit Budget next spring if Britain leaves the EU with No Deal
Sources said the Chancellor has been forced to shelve any major decisions he had hoped to make in this month’s Budget because of the impasse in Brexit talks
PHILIP Hammond is planning an emergency Brexit Budget in the spring if Britain crashes out of the EU without a deal.
Sources said the Chancellor has been forced to shelve any major decisions he had hoped to make in this month’s Budget because of the impasse in Brexit talks.
They said it effectively means the October 29 Budget and the Spring statement will be switched around in all-but name.
The Spring Statement - normally used to publish the latest economic forecasts - would be upgraded to make it a budget-style event.
It makes a mockery of Mr Hammond’s big move last year to switch the Budget back to the Autumn.
But Treasury insiders say they cannot make big fiscal moves before they know if Britain is leaving the EU next March without a deal - given the huge gulf in economic forecasts between that scenario and getting a deal.
The Treasury believe a no deal Brexit will require an extra £80 billion more borrowing.
But securing a deal at next month’s emergency EU summit would lead to a 21-month transition period - leaving our current trading relationship with the bloc unchanged until January 2021.
Sources said this lack of clarity would make the Chancellor’s October 29 Budget a non-event.
And Theresa May has already pinched two of the announcements Mr Hammond had planned for the Budget.
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She used her Tory conference speech to announce a further freeze in fuel duty and a house building splurge.
The PM also beat the Chancellor to declaring an end to austerity.
These spending commitments come after the Government has already promised an extra £20 billion a year funding boost for the NHS.
The Budget is expected to contain “difficult” decisions on measures to pay for the costly announcements.
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