Philip Hammond: Britain’s circumstances have changed

Posted On: 
3rd October 2016

Chancellor Philip Hammond told the Today programme he was abandoning the Government’s target to achieve a budget surplus in 2019-20 because Britain’s circumstances have changed.

“We have to get our public finances in order. Every Conservative will understand that a fundamental requirement for the future of our country is to get public spending under control, to balance the budget. But our circumstances have changed. The exit vote on June 23, the slowing of the world economy generally creates a new set of circumstances. As we go into a period when inevitably there will be more uncertainty in the British economy, we need to have the space to be able to support the economy through that period. But we need to do that within a context that makes very clear that we will balance that budget, we will get back to a position of fiscal sustainability.”

“What we’ve said is we will not deliver a surplus in 201...