Budget set to restrict spending
Hammond says putting cash into economy now would be ‘reckless’
CHANCELLOR Philip Hammond has signalled he will take a cautious approach to spending in Wednesday’s Budget.
Mr Hammond accused people calling for him to use increased tax receipts for a major injection of cash into the economy and services as “reckless”.
He told the BBC’s Andrew Marr Show: “It’s not money in the wallet because we are borrowing a huge amount of money.
“Remember, we have over £1.7 trillion-worth of debt. This isn’t money in a pot.
“What is being speculated on is whether we might not have borrowed quite as much as we were forecast to borrow.
“If your bank increases your credit card limit, I don’t think you feel obliged to go out and spend every last penny of it immediately.”
Mr Hammond said he saw his role as ensuring “that we have got reserves in the tank, so as we embark on the journey that we will be taking over the next couple of years, we are confident that we have got enough gas in the tank to see us through that journey”.
Amid reports the Chancellor was set to provide more than £1 billion for social care in the Budget, Mr Hammond said: “I recognise in particular that social care, and local authorities delivering social care, are under some pressure. This isn’t just about money. We should remember there are many authorities managing extremely well.”
The Chancellor also rejected calls from Labour’s John McDonnell for him to publish his tax returns.
He said: “I have no intention of doing so. Just for the record, my tax affairs are all perfectly regular and up to date. But I think this demonstration politics isn’t helping the atmosphere in British politics.”
Mr Hammond also spoke about Brexit and warned the European Union Britain will not “slink off like a wounded animal” but will “fight back” if it does not get the deal it wants.
Ahead of the UK triggering the Article 50 negotiations on terms of withdrawal, the Chancellor said Britain would “do whatever we need to do” to be competitive in the event of leaving the EU without a trade agreement.
Mr Hammond added Britain’s “fighting spirit” would come to the fore in any future clash with the EU.
He said: “If there is anybody in the European Union who thinks that if we don’t do a deal with the European Union, if we don’t continue to work closely together, Britain will simply slink off as a wounded animal, that is not going to happen.
“British people have a great fighting spirit and we will fight back. We will forge new trade deals around the world. We will build our business globally.
“We will go on from strength to strength and we will do whatever we need to do to make the British economy competitive and to make sure that this country has a great and successful future.”