Budget 2018: Ahead of today’s autumn budget, chancellor Philip Hammond has admitted that a no-deal Brexit would require a new Budget.
Ahead of today’s autumn budget, chancellor Philip Hammond has admitted that a no-deal Brexit would require a new budget.
Speaking to Sky News, the chancellor noted that the treasury would have to take a “different approach” to the economy should Britain fail to secure leaving deal with the European Union.
While Hammond says he believes leaving the EU without a deal is “an extremely unlikely situation,” he noted that “we have to prepare and plan for all eventualities as any prudent government would.”
He adds: “If we were to find ourselves in that situation then we would need to take a different approach to the future of Britain's economy. We would need to have a new budget that set out a different strategy for the future.
“The economy will change – it will have to restructure itself over a period of time and that will be a fairly major transition.”
The chancellor, however, was light on details of what a no-deal budget would look like. He says: “It would take appropriate fiscal measures to protect the economy, to prepare us for the future and to strike out in a new direction that would ensure that Britain was able to succeed, whatever the circumstances we found ourselves in."
Despite concerns over a no-deal, however, Hammond claimed that the UK economy was strong. He says: "The fundamental health of the economy is plain to see. We are operating under a cloud of uncertainty. But notwithstanding that the behaviour of the economy is buoyant.
“Over my lifetime, people’s living standards have almost doubled and we want to go on seeing that growth in living standards so that we can make good on our promise to the next generation that they too will be better off than their parents.”
For more information on how a no-deal Brexit could shape your personal finances, read out round up here.