Tax cuts could follow a good exit deal
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.”