Don’t panic Mr Hammond: Brexit Tories warn Chancellor against drastic measures
PHILIP Hammond has been warned by fellow Tory ministers to avoid drastic measures in his mini-budget following the Brexit vote, it emerged today.
Chancellor Philip Hammond has been warned against drastic measures in his mini-budget
They have told the Chancellor that a multi-billion-pound spending spree is unnecessary and could spread panic. Brexit-supporting ministers are said to be concerned that Mr Hammond, who backed Remain, is being excessively gloomy.
He has already ditched his predecessor George Osborne’s commitment to balancing the Treasury books by 2020. He is expected to unveil £20billion of infrastructure plans in his Autumn Statement on November 23.
International Trade Secretary Liam Fox was reported to be leading the warnings. He was said to have told Tory MPs last week: “There is no need for any economic stimulus in the Autumn Statement. The economy is in good shape.
“The last thing we need is a George Osborne-style emergency budget. We want a steady-as-she-goes statement.
“If you go on a spending spree people will think there is a reason to panic.”
Philip Hammond on post-Brexit economic growth
Liam Fox is reported to be leading the warnings
Boris Johnson is said to think that 'talking down the economy' is a self-inflicted wound
An ally of Boris Johnson, another keen Brexiteer, said the Foreign Secretary supported “necessary” infrastructure spending but was concerned about the message to voters. The ally said: “Boris thinks talking down the economy is a self-inflicted wound.”
If you go on a spending spree people will think there is a reason to panic
Another Cabinet source said: “All chancellors do a bit of talking down to temper expectations.
“You soften the ground a bit so when it comes back stronger the surprise is on the up side.
“But any suggestion that we’re in a dark place and we need boosts would not be helpful.”
Mr Hammond warned of 'turbulence' after the Brexit vote
Last week, Mr Hammond promised Tory MPs that he would not adopt a carefree approach and in his Tory conference speech earlier this month, he warned of “turbulence” after the Brexit vote.
He is understood to be concerned that without stimulus economic growth could be as low as 0.8 per cent next year rather than the 2.2 per cent forecast at the Budget in March.