11:19 | 04/11/2016 Global Economy
Britain's Chancellor of the Exchequer Philip Hammond plans to adopt a flexible fiscal framework that will allow the budget deficit to rise should Brexit, Britain's exit from the European Union, impact the economy.
Britain's Chancellor of the Exchequer Philip Hammond in a London conference (Photo: AP/VNA)
At Tuesday’s cabinet discussions, Hammond said he expects only a modest fiscal stimulus in his Autumn Statement of policy later this month, adding that a bigger package is ready to be unleashed if necessary, the Financial Times reported on Wednesday. The flexible fiscal framework aims to protect Britain’s economy against future risks following Brexit.
The same day, the National Institute of Economic and Social Research (NIESR) upgraded its Gross Domestic Product forecasts for the UK to 2% in 2016 and 1.4% in 2017, following Britain’s better-than-expected economic performance in the third quarter.
However, NIESR Director Jagjit Chadha said the positive data for a quarter means nothing. He warned that long-term economic prospects remain uncertain as the British government starts the formal procedure to of leaving the EU next March./.