Brexit secretary confirms deal expected by mid-November

Brexit secretary confirms deal expected by mid-November

Brexit secretary confirms deal expected by mid-November

In the Budget statement the chancellor signalled austerity was "coming to an end", and said the government would deliver a "double deal dividend" if an agreement was reached with the European Union: "a boost from the end of uncertainty; and a boost from releasing some of the fiscal headroom I am holding in reserve".

However, the OBR's forecast is based on a smooth and orderly Brexit. "The scale would be very hard to predict, given the lack of precedent".

Digital tech giants such as Google, Facebook and Amazon face a new levy from the British government after Chancellor Philip Hammond revealed that he was introducing a UK Digital Services tax.

Mr Hammond hailed the fulfilment of a key Tory Manifesto pledge a year early as "a tax cut for 32m people".

In the last scheduled Budget before Brexit, Mr Hammond said: "We are at a turning point in our history and we must resolve to go forwards, not backwards and work together to build a Britain we can all be proud of".

Mr Hammond said his Budget was aimed at helping "the strivers, the grafters and the carers" and would pave the way for a "brighter future".

Opposition leader Jeremy Corbyn said austerity was not over, and the budget was a "broken promise" budget of "half measures and quick fixes while austerity grinds on".

He told MPs: "Whatever the Chancellor claims today, austerity is not over".

However, it added that this improvement had been swallowed up by the extra spending promised for the NHS by the prime minister in June.

All spending announcements in Philip Hammond's Budget will be fully funded, regardless of whether the United Kingdom secures a Brexit deal, Downing Street has pledged.

"Mr Hammond said it would put "£130 in the pocket of a typical basic rate taxpayer".

Setting out both the projection for government spending ahead of next year's Spending Review, he said that departmental revenue spending would grow at an average of 1.2% per year in real terms between 2019-20 and 2023-24 - compared to average growth of -3% after the 2010 review, and -1.3% after the 2015 round.

As UC is rolled out, around one-third of benefit claimants will end up £1,000 or more worse-off and one-third at least £1,000 a year better-off than they would have been under the previous system.

Prime Minister Theresa May insists she will not accept an EU proposal which would establish a customs border between Northern Ireland and the British mainland, while Brussels is resisting her plan to keep the whole United Kingdom temporarily in a customs union.

And he hinted that an emergency Budget could take place in the spring "if the economic or fiscal outlook changes materially in-year".

The UK budget speech - the longest in a decade - contained few grand plans, concluded with a modest tax cut and consisted mostly of a patchwork of quick fixes: pothole filling, school hall repairs and funds to fix public toilets (a cue for a bout of toilet puns from the Chancellor).

Borrowing this year is expected to be £11.6bn lower than forecast by the OBR in the Spring Statement.

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