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13 March 2019

Hammond promises £26bn “deal dividend” for orderly Brexit

Chancellor Philip Hammond has today (13th March 2019) promised to free up more money for public services and to reduce taxes if MPs voted to leave the European Union with a deal.

In his Spring Statement, he warned of uncertainty over the UK economy after last night’s defeat for Prime Minister Theresa May, whose Brexit deal was rejected in the House of Commons for a second time.

Joel Dungate, Investment Analyst, said: “In his Spring Statement Chancellor Philip Hammond announced that the Office for Budget Responsibility (OBR) had cut its 2019 growth forecast to 1.2%, from an October forecast of 1.6%. This would represent the weakest growth since 2009. The Chancellor admitted that there is a “cloud of uncertainty” hanging over the UK economy due to Brexit and warned that, if the UK leaves in disorderly fashion, it would represent a “significant” blow to economic activity.

“However, Mr Hammond said that, if the House could negotiate an orderly exit from the EU, it could reap a ‘deal dividend’, which could free up more money on public services. Furthermore, the OBR revised down its government borrowing forecasts by £3bn, which should help to alleviate the country’s debt burden in the coming years. Dependent on an orderly Brexit, Mr Hammond announced a spending review this summer, which will provide greater details for how money will be allocated and spent.”

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Hammond promises £26bn “deal dividend” for orderly Brexit

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