The chancellor, Philip Hammond, should limit the impact of the Brexit vote on the economy by excluding public investment spending from his deficit reduction plans in his autumn statement next week, economists say. The chancellor is expected, in the autumn statement next Wednesday, to admit that Britain’s public finances have suffered their biggest fall since 2011. Hammond has hinted that he will reverse some cuts in public investment, due to take effect from next April, to fund “oven-ready” infrastructure projects and maintenance. Matthew Whittaker, chief economist at the Resolution Foundation thinktank, said the chancellor should separate public investment spending from the day-to-day departmental budgets and welfare spending, to free up a £17bn war chest to boost skills training and infrastructure projects. In a document published by the Treasury, the expected deficit in 2019/20 was £41bn, producing a £50bn funding gap in that year.

Source: The Guardian November 17, 2016 20:01 UTC