Economic think tank says Budget a big gamble

CHANCELLOR Philip Hammond has taken a gamble with the public finances with a one in three chance of failing, a leading economic think tank has warned.

Mr Hammond took advantage of a £68bn windfall from revised borrowing forecasts to help fund a £100bn loosening of the pursestrings in Monday’s Budget, promising voters a “brighter future” after years of austerity.

But the Institute for Fiscal Studies warned that the amended figures from the Office for Budget Responsibility could easily be reversed, forcing the Chancellor to borrow more after “painting himself into a corner”.

Mr Hammond called the giveaway Budget a sign “we’ve turned a corner and we are able to give Britain a bit of good news”.

He suggested a Brexit deal could trigger more tax cuts and a rise in public service spending.

Both the Chancellor and Prime Minister Theresa May were forced to deny that the package — including income tax cuts for 32 million people, a funding boost for the NHS and help for high streets — was to pave the way to an early general election.

But expert analysts said the bulk of the tax cuts would go to the wealthy, while his spending plans meant “no bonanza” for public services outside the NHS.

Living standards think tank the Resolution Foundation claimed 45% of the benefits will go to the top 10% of households.