Damage Control Is All the U.K. Budget Can Do

Pity Philip Hammond, the U.K.’s chancellor. He’ll be proposing a budget today amid political chaos, faltering public services, simmering anger, and, in the background, the specter of Brexit. Also: He’s supposed to simultaneously cut taxes, end austerity and reduce debt. It’s an impossible task. And this budget — the last before Brexit — will be a premonition of bigger debates to come.

Start with the good news. Britain’s budget deficit is now about 2 percent of GDP, down from 10 percent in 2010. Public sector debt, for the moment, is under control. A forecast from the Office for Budget Responsibility suggests Hammond will have an added 13 billion pounds ($16.7 billion) a year to work with, thanks to higher-than-expected tax revenue.