Tax cuts could fol­low a good exit deal

The Courier & Advertiser (Dundee Edition) - - NEWS -

Bri­tons could see tax cuts if the coun­try is able to agree good Brexit terms with Brus­sels, Philip Ham­mond has said.

The chan­cel­lor made the claim as he said the last 10 days had seen “a mea­sur­able change in pace” in Brexit ne­go­ti­a­tions, although many chal­lenges re­main ahead of a prospec­tive deal.

Mr Ham­mond, speak­ing to re­porters at the In­ter­na­tional Mone­tary Fund’s an­nual meet­ing in Bali, told The Fi­nan­cial Times: “If we are suc­cess­ful in ne­go­ti­at­ing a pack­age, there will be an up­side div­i­dend in terms of the econ­omy.

“I’ve been hold­ing a slightly larger fis­cal buf­fer than would oth­er­wise be nec­es­sary be­cause of the de­gree of un­cer­tainty that ex­ists at the mo­ment.

“As that un­cer­tainty is un­wound and we’re in more favourable cir­cum­stances, log­i­cally, one would need less of a fis­cal buf­fer and some of that could be re­leased to sup­port the spend­ing en­ve­lope or to de­liver tax cuts.”

Philip Ham­mond.

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