uk-delays-public-spending-review-to-focus-on-brexit

UK delays public spending review to focus on Brexit

LONDON (Reuters) – Chancellor Sajid Javid said he would delay a long-planned review of public spending due this year to allow officials to focus on preparing for Brexit on Oct. 31.

FILE PHOTO: Britain’s Chancellor of the Exchequer Sajid Javid walks into Downing Street in London, Britain, August 6, 2019. REUTERS/Peter Nicholls

Javid said he would postpone the full three-year spending review until 2020, and instead set out spending limits next month for just the 2020/21 financial year, which would continue to respect his predecessor Philip Hammond’s fiscal rules.

No date was set for the annual budget due later in the autumn, when Javid will face pressure to fund tax cuts promised by Boris Johnson in his campaign last month to succeed Theresa May as prime minister and Conservative Party leader.

Johnson has told public bodies to be ready to leave the EU on Oct. 31 without any transition deal, which business groups fear will cause widespread economic disruption and many analysts expect to trigger new public spending priorities.

“The Prime Minister and I have asked for a fast-tracked Spending Round for September to set departmental budgets for next year. This will clear the ground ahead of Brexit while delivering on people’s priorities,” Javid said.

John McDonnell, finance spokesman for the opposition Labour Party, said the move was no way to run a budget, or a country.

“This smacks of pre-election panic measures by the government,” he said. “Johnson is splashing a little bi

Read More at reuters.com

 » Read More at reuters.com