Britain readies last annual budget before Brexit


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The British government will be unveiling its final budget before leaving the European Union, and it is also expected that it will be more difficult than ever before.

Finance Minister Philip Hammond will deliver his annual tax and pay statement at 1530 GMT, along with the Conservative government 's latest economic growth forecasts.

Concern is mounting that Britain will exit the EU in March with a deal in place with Brussels, an outcome widely seen as a worst-case scenario that would have a disastrous economic impact – and which would spark a "new" emergency budget, according to Hammond.

"The approach that is going to be based on the assumption … of a deal being made with the EU and we are continuing to work with our closest neighbors in Europe," Chancellor of the Excerpt Hammond told Sky News on Sunday.

"If we do not get a deal, if we were to leave the EU without any deal … then we would need to take a different approach to the future of Britain's economy.

"Hammond added." We would need to look at a different strategy for the future, "Hammond added.

London and Brussels are in the process of becoming more important than others. Prime Minister Theresa May get an eventual deal with the EU backed by lawmakers.

The spending plan will be studied by May's coalition partners from Northern Ireland's Democratic Unionist Party.

The small group is a kingmaker that could yet sink both an agreement with Brussels and May's government in protest over the emerging outlines of a Brexit deal.

– 'Delayed bread' –

Hammond's hand is boosted by Britain's resilient economic health.

Growth rates have slowed down since the 2016 referendum but the 2018-19 fiscal year deficit could be 1.8 percent of GDP.

Britain is reaping the rewards of a strict diet of austerity measures that curbed spending and raised taxes in the wake of the 2008-09 financial crisis.

Many of these policies already underpinned the budget and announced on Monday.

This leaves Hammond free to work with the annual meeting of this year that the era of austerity was over and the "hard work has paid off".

He has already announced 900 million ($ 1.2 million, 1.0 billion euros) in their own space.

Billions more are being made by Hammond for roads and mental health funding.

But he also hinted that some taxes could rise.

At the same time, Hammond has publicly backed calls for a tax on the UK and Google and Facebook.

Researchers at London's Institute for Fiscal Studies said that given the backdrop, the best Hammond could be postpone the announcement of any unpopular measures until a future date.

"There's no way Hammond can end austerity and balance the books," the think-tank said.

"It could not be better than bread avoided."

British Chancellor of the Exchequer Philip Hammond is to unveil a budget that could be scuppered by the final terms of a Brexit deal

Pros and cons of possible models which is based on Brexit trade between the UK and the EU

Prime Minister Theresa May has said that the era of British austerity is over and the "hard work has paid off"

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