LONDON — Finance minister Philip Hammond challenged the two rivals to become Britain’s prime minister over their spending promises on Monday, warning that walking away from the European Union without a deal would use up the extra money in the budget. “The ‘fiscal firepower’ we have built up in case of a no-deal Brexit will only be available for extra spending if we leave with an orderly transition,” Hammond said on Twitter. The estimated size of the fiscal war chest could be reduced because of a slowdown in the global economy which is likely to weigh on Britain’s economy. Britain’s budget forecasters say almost half the headroom might vanish depending on how official statisticians treat student loans in the public accounts. ($1 = 0.7912 pounds) (Reporting by William Schomberg; Additional reporting by Michael Holden Editing by Raissa Kasolowsky)

Source: National Post July 01, 2019 12:11 UTC