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.
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Craig Erlam
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