Philip Hammond to promise 'new plan' for economy after George Osborne's tenure

Posted On: 
3rd October 2016

Philip Hammond will use his first Conservative conference speech as Chancellor to mark a departure from the policies of George Osborne. 

Chancellor Philip Hammond on Downing Street
PA Images

Mr Hammond will say he will oversee a “new plan for the new circumstances Britain faces” after the decision to leave the European Union.

He will confirm formally that he is ditching his predecessor’s central policy to achieve a budget surplus by 2020.

"The fiscal policies that George Osborne set out were the right ones for that time,” Mr Hammond will tell the audience in Birmingham.

"But when times change, we must change with them. So we will no longer target a surplus at the end of this Parliament."

Theresa May sacked Mr Osborne from the Government after becoming Prime Minister.

In other extracts of Mr Hammond’s speech, he will commit to a programme of fiscal discipline but pledge to approach it in a “pragmatic way”.

“At the Autumn Statement in November I will set out our plan to deliver long-term fiscal sustainability, while responding to the consequences of uncertainty in the short-term and recognising the need for investment to build an economy that works for everyone,” he will add.

"A new plan for the new circumstances Britain faces."

A £5bn package to boost housebuilding, some of it funded by extra government borrowing, has been approved by Mr Hammond today.