Economics

No-Deal Brexit May Prolong U.K. Austerity, Hammond Says

  • Financial chief says new budget may be needed without accord
  • Opposition party says Hammond is complacent about EU talks
Philip HammondPhotographer: Simon Dawson/Bloomberg
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The U.K. will need new tax and spending plans and may have to extend austerity policies if it fails to secure a deal with the European Union, Chancellor of the Exchequer Philip Hammond said.

With analysis last week showing a no-deal Brexit would drag the economy to a near-standstill next year, in that scenario “we’d need to have a new budget that set out a different strategy for the future,” Hammond said.