Philip Hammond to ditch George Osborne’s plans for a budget surplus by 2020
Philip Hammond is expected to mark a departure from George Osborne’s fiscal approach
Philip Hammond - credit: Kirsty Wigglesworth/AP/Press Association Images
Philip Hammond will use his first Tory conference speech as Chancellor to confirm he is ditching George Osborne’s central aim of achieving a budget surplus by 2020.
In a speech aimed at marking a departure from Osborne’s approach, Hammond will say he will oversee a “new plan for the new circumstances Britain faces” after the decision to leave the European Union.
"The fiscal policies that George Osborne set out were the right ones for that time,” 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 Osborne from the Government after becoming Prime Minister.
In other extracts of 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 Hammond today.
In June parliament voted to replace Air Passenger Duty with a new Air Departure Tax, which is expected to be substantially lower
Prime Minister used her speech to revive plans contained in the Conservative manifesto to cap prices for 12 million consumers
Speaking at the Labour conference, McDonnell said he wanted to end the “scandal” of private firms making huge profits on the back of deals to build hospitals and schools
YouGov finds that 61 per cent of Leave voters believe that “significant damage to the British economy to be a price worth paying” for Brexit