But Mr. Hammond’s financial plans are generally based on the assumption that Britain negotiates the type of exit he wants from the European Union: not only a smooth departure, but one that maintains close economic ties to the bloc. Hard-line Brexit supporters within Mr. Hammond’s Conservative Party want a cleaner break with the bloc, and some are threatening to vote against any Brexit deal that ties Britain too closely to the European Union. So his comments will be seen as a reminder to them of the economic — and political — consequences of anything that risks an orderly departure from the bloc of the type he wants. Indeed, many analysts believe the vote for Brexit was partly a reaction to austerity policies, particularly in areas of the country that did not benefit from globalization. Critics argue that Mr. Hammond is still not planning to be aggressive in reversing those policies, and that some cuts will continue, particularly to capital spending.

Source: New York Times October 30, 2018 07:54 UTC