has come under pressure to relax planned austerity measures and give ground to lobbying for higher public sector pay. Worryingly, the Treasury suffered a fall in its main source of income – income tax – which dropped by £100m in August. National insurance increased by £600m to more than offset the fall in income tax revenue. Debt interest payments are expected to rise, further narrowing Hammond’s room to increase spending while bringing down the deficit. “In addition, the chancellor likely will retain scope to ease the fiscal consolidation in the event of a damaging hard Brexit rather than ease policy now,” he said.

Source: The Guardian September 21, 2017 10:40 UTC