Hammond unveils updated ‘Spring Statement’ outlook with higher revenue

Hammond unveils updated ‘Spring Statement’ outlook with higher revenue

British Minister of Finance Philip Hammond will present what is expected to be a tempered biannual financial report, the Spring

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Photo: AP/Frank Augstein

British Minister of Finance Philip Hammond will present what is expected to be a tempered biannual financial report, the Spring Statement, to the House of Commons today. The 20-minute speech is thought to reveal $15 billion more in the Treasury’s accounts after higher than expected tax windfall and lower borrowing projections.

However, backbench Brexiteers will be more interested in the Brexit divorce bill, which Mr Hammond will also address in the Spring Statement accompanied by figures to be released by Britain’s fiscal watchdog today. While Britain agreed to pay between $48-$54 billion after leaving, no final figure has been agreed upon—some EU states think it could actually be higher.

Mr Hammond faces a tough task selling the divorce bill to the most ardent hardline Brexiteers who forced PM May to side with them against him in December. Many will only agree to the divorce bill in exchange for a favourable trade deal. Expect Mr Hammond to play down the contentious issue of the divorce bill and play up the need to pay down debt.