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UK Budget: End of austerity depends on Brexit deal

Philip Hammond will announce tax cuts and higher spending on public services, which are dependent on Theresa May reaching an agreement with Brussels.

Centtrip: Pound sells off despite PM’s Brexit deal gaining support

Philip Hammond will deliver today the last budget before the UK is due to leave the European Union.

The Chancellor of the Exchequer today is anticipated to announce an end to austerity and an injection of funds into strained public services, but any tax cuts and continuous higher public spending – as well as the budget itself – will heavily depend on whether Theresa May could deliver a positive Brexit deal.

Meanwhile, Asia-Pacific equities swung between gains and losses on the open after global stocks declined sharply on a disappointing earnings outlook for major US companies last week.

In Japan, the Tokyo Stock Price Index (TOPIX) fell by 5.7 per cent in its worst weekly performance since February following a combination of concerns over US-Chinese trade tensions, the weakening Chinese economy, the controversial Italian budget and as Wall Street tumbled on concerns over the earnings outlook for major technology companies, which overshadowed stronger-than-expected US economic growth.

In currencies, the Dollar Index has nudged higher this morning, while the yield on the 10-year US Treasuries is hovering at 3.079 per cent after touching a three-week low on Friday, 26 October. The Euro edged down following an election setback for Angela Merkel’s grand coalition in Hesse on Sunday, 28 October.

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UK Budget: Foretale of end of austerity, but at what cost?


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