Hermes: Fiscal slippage not halted by Brexit savings
Neil Williams, Group Chief Economist at Hermes Investment Management, sets out his reaction to today’s UK Autumn Statement. Today’s Statement was always going to signal the extent to which chancellor Hammond has kicked austerity into touch, though in the event not as much as some would like. The Treasury is no longer aiming to return the finances from red to black by 2019/20. Yet, with borrowing lifted again and Brexit looming, the chancellor is not going to let his fiscal-guard down completely: the squeeze is just deferred.