Raymond Doherty 2 Jul 2019 04:01pm

Hammond puts brakes on spending review

Chancellor Philip Hammond had promised a full spending review this autumn if a Brexit deal was in place

Today, however, he told MPs, “Departments are already commissioned to carry out the work necessary for such a spending review, but it will be for the new government to decide whether the circumstances make it appropriate to conduct a full three-year spending review, or a single year exercise.”

It is unlikely that Hammond will keep his job when either Boris Johnson or Jeremy Hunt become prime minister at the end of July.

Yesterday, the chancellor challenged both candidates’ proposed spending plans in the event of a no-deal Brexit.

Hammond said, "The 'fiscal firepower' we have built up in case of a no-deal Brexit will only be available for extra spending if we leave with an orderly transition.

"If not, it will all be needed to plug the hole a no-deal Brexit will make in the public finances.”

He went even further, saying that there will be “a hit to the exchequer of about £90bn. That will also have to be factored in to future spending and tax decisions.”

He has also strongly hinted that he is willing to vote with Labour to block a no-deal Brexit.