[ad_1]
Philip Hammond will announce the end of austerity Monday in his third budget, but warns the eurosceptics that a better future in terms of lowering taxes and raising public spending will be destroyed if Britain does not succeed to get a good deal on Brexit.
Mr Hammond, backed by an unexpectedly higher than expected gain in tax revenue, rising to £ 13 billion, will ease public spending with more money for overburdened public services, including $ 2 billion £ extra per year for mental health.
But the Chancellor will insist that, if the end of a decade of austerity was "in sight", it all depended on Theresa May's ability to conclude a departure agreement with Brussels that would maintain trade between Britain and the EU.
Mr Hammond will tell MEPs that major public spending decisions can only be made once the Brexit agreement is in place. "Our approach is based on an agreement with the EU on reasonable terms," Hammond told Sophy Ridge.
"If we do not agree, we will have to take a different approach to the future of the UK economy," he said. "We should consider a different strategy and, frankly, we would need a new budget that sets out a different strategy for the future."
Hammond will use his budget to clamp down on conservative Eurosceptics in support of May's compromise plan, agreed with her Checkers cabinet in July, which would keep Britain close to the EU's customs union. EU and the single market.
The Chancellor will argue that a Checkers-type agreement would create an "agreement dividend" in two ways: official growth forecasts would be improved while allowing for the spending of part of the £ 15 billion kept in debt. reserve as a "buffer" against disorderly Brexit.
The budget will take a tricky path to force Mrs May to increase her spending now – considered by number 10 as essential for safeguarding failing public services – and to delay major decisions after Brexit.
With more than GBP 13 billion a year – thanks to improved tax revenue forecasts by the Office of Budget Responsibility – Mr Hammond will be able to finance some of the government's top priorities.
The biggest part will go to fulfilling Ms. May's promise to spend an additional 25 billion pounds on the NHS by 2023, while Hammond will increase mental health investments by 2 billion pounds the same year .
Specialized crisis teams for children and young people will be set up throughout the country, a 24-hour helpline for people in mental health crisis will be set up and there will be more ambulances from mental health specialists.
A significant infrastructure package to boost Britain's generation capacity will include support for broadband and a 44% increase in highway and other major highway spending by 2020-2025 .
Hammond will also announce new government support for research and development in the automotive sector – including the development of electric cars – and digital manufacturing.
Other pressure points in the public sector will be addressed, including the provision of more liquidity to alleviate the disruption of universal credit, the government's flagship policy on social protection.
In addition, the Department of Defense will have emergency funding to offset a shortfall in equipment purchases, although broader decisions about the future will be made. expenses will be carried forward to next year.
Mr. Hammond confirmed that he would "generally" outline in his budget his overall spending plans for the next five years, but that departmental totals and a final "envelope" for expenditures would only be set when the final Brexit settlement is clear.
