Brexit Rewrites UK Budget Rules as Borrowing Set for First Big Rise Since 2010

Britain could borrow nearly 65 billion pounds more than planned in the next couple of years as new Chancellor Philip Hammond seeks to ‘reset’ government budget policy to ease the shock of last month’s vote to leave the European Union.

Ratings agencies and economists widely expect borrowing to rise materially next year for the first time since 2010, as Hammond has to call time – temporarily – on the austerity which dominated his predecessor George Osborne’s six years in office.

After taking office two weeks ago, Hammond said the darker post-Brexit outlook meant policies the Conservative government had pursued since 2010 needed to change – and economists are now starting to put numbers on what this might mean.

Reuters

Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.