Oh, this one is a gem
The headlines doing the rounds tonight is from a Times story due out tomorrow saying that UK Chancellor Philip Hammond will refuse to use billions of taxpayers money to budget for a hard Brexit. Apparently he says it;
“would be irresponsible to spend taxpayer money now in preparation for no-deal exit”
The hypocrisy of that comment is off the charts considering he’s unlikely to even have the budget for normal spending, as the OBR are reportedly going to slash their growth forecasts when they release their next Economic and Fiscal Outlook (EFO), at the same time that Hammond makes his Autumn statement. They have already warned about reducing productivity forecasts today.
The long and short of it is that he’s trying to spin all this out into one big fat reason why he’s not going to be spending what he thought he was getting, and potentially trying to kill two birds with one stone. I’m sure more of this will play out as the headlines develop in the morning.
This news is potentially negative for the quid tomorrow but it all depends on how it is taken. It’s a head up for early trading anyway, and we’ll scroll back round to this story tomorrow.