Hammond: Post-Brexit UK economy faces extended uncertainty


Philip Hammond is to announce the Autumn Statement and the government’s expenditure plans on Wednesday. Which investments are planned to be made in the Post-Brexit UK economy?

21 November, AtoZForex The UK Treasury chief Philip Hammond has commented that the country’s economy encounters uncertainty due to Brexit negotiations. Therefore, the government should invest in infrastructure in order to be ready for any opportunities or difficulties the country might face when it exits the bloc.

Mr. Hammond to reveal investments in the Post-Brexit UK economy

On Wednesday, the Chancellor of the Exchequer will reveal the Autumn Statement which will be the first important fiscal policy announcement and economic update following the referendum in June. Philip Hammond will pose a new fiscal framework that will provide the government with more flexibility to react to changing economic conditions and the need to invest in the productive capacity of the economy. According to the Treasury chief, forecasts were indicating an economic slowdown next year and a “sharp challenge” for the public finances.

On Sunday, the Treasury reported that the government would spend £1.3 billion to revamp Britain’s roads. It is a part of a larger multibillion-pound infrastructure investment plan that will be disclosed by to Philip Hammond on Wednesday.

Referring to the negotiations with the EU, Mr. Hammond stated that:

“We trade huge amounts together, and I’m confident that we will be able to agree on an arrangement with our European partners that ensure that our companies will continue to trade in and have access to European marketplaces.”

The Chancellor said that the country should attempt to maintain European market access for its large financial sector and that the discussions should seek a “win-win outcome”.

Theresa May: government plans to invest £2 billion

Furthermore, UK’s Prime Minister Theresa May mentioned that the government planned to make an additional investment of £2 billion a year on research and development by the end of the parliamentary term in 2020. It was also planning to establish a new fund to help commercialize new technologies, including robotics and artificial intelligence. Theresa May should discuss those plans at the annual conference of the Confederation of British Industry on November 21. In addition, she said the Autumn Statement would provide ordinary working families with targeted help.

 

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