Britain on Friday denied it was preparing an emergency budget just hours after a junior minister said a stimulatory spending plan was due in the autumn as Prime Minister Boris Johnson braces for a potential no-deal Brexit.

Johnson took office on Wednesday pledging to do a new Brexit deal with the <a href="https://www.wionews.com/world/frances-macron-invites-british-pm-johnson-to-visit-238559">European Union </a>but also to ramp up no-deal preparations. He has announced a raft of spending pledges including increasing police numbers by 20,000 to help cut crime.

After a junior interior minister responsible for policing, Kit Malthouse, said Johnson had announced there was to be an emergency budget in the autumn, the prime minister's spokesman said there were no plans for one.

"There are no plans to do so," PM Johnson's spokesman said when asked if Britain would be holding an emergency budget. "Fiscal events, as you know, are announced by the Treasury."

Johnson has not announced an emergency budget. The finance ministry, known as the Treasury, said it was up to Sajid Javid, the finance minister whose official title is Chancellor of the Exchequer, to announce fiscal events.

Typically an autumn budget takes place between late October and early December.

If Johnson is unable to convince the European Union to do a new Brexit deal and lawmakers try to prevent a no-deal exit then there is speculation that he could call an election.

Johnson, who made more than 30 billion pounds ($37 billion) worth of spending commitments during his leadership campaign, said on Thursday his pledges had been modest "so far".

He has said spending could be financed using the 27 billion pound "fiscal headroom", an amount of extra borrowing possible without breaking a budget deficit cap of 2% of GDP introduced by former finance minister Philip Hammond.

TAX CUTS

Javid said during his failed bid to lead the Conservative Party that he would prepare for a no-deal Brexit with an emergency budget that would include tax cuts for businesses and individuals.

Before he was appointed to the post, Javid said he wanted to cut tax for the lowest earners but would also consider scrapping the top rate of income tax, if he thought it would inject more dynamism into the economy.

"The prime minister has also announced there's going to be an emergency budget in the autumn which will be designed to stimulate the economy," Malthouse told Sky News.

"What you hope is that a more strongly growing economy will produce greater tax revenue which we can pay for some of the things that we want to do," he said.

Malthouse said a pledge to boost police numbers would cost about 500 million pounds ($622 million) in the first year.

Malthouse said: "There's certainly headroom in the finances."

"We've gone from a situation at the start of 2010 where we were borrowing one pound in every four that the government spent to now borrowing one pound in every thirty-four so we've got a bit of room for manoeuvre."

Britain on Friday denied it was preparing an emergency budget just hours after a junior minister said a stimulatory spending plan was due in the autumn as Prime Minister Boris Johnson braces for a potential no-deal Brexit.

Britain on Friday denied it was preparing an emergency budget just hours after a junior minister said a stimulatory spending plan was due in the autumn as Prime Minister Boris Johnson braces for a potential no-deal Brexit. Johnson took office on Wednesday pledging to do a new Brexit deal with the European Union but also to ramp up no-deal preparations. He has announced a raft of spending pledges including increasing police numbers by 20,000 to help cut crime. After a junior interior minister responsible for policing, Kit Malthouse, said Johnson had announced there was to be an emergency budget in the autumn, the prime minister's spokesman said there were no plans for one. "There are no plans to do so," PM Johnson's spokesman said when asked if Britain would be holding an emergency budget. "Fiscal events, as you know, are announced by the Treasury." Johnson has not announced an emergency budget. The finance ministry, known as the Treasury, said it was up to Sajid Javid, the finance minister whose official title is Chancellor of the Exchequer, to announce fiscal events. Typically an autumn budget takes place between late October and early December. If Johnson is unable to convince the European Union to do a new Brexit deal and lawmakers try to prevent a no-deal exit then there is speculation that he could call an election. Johnson, who made more than 30 billion pounds ($37 billion) worth of spending commitments during his leadership campaign, said on Thursday his pledges had been modest "so far". He has said spending could be financed using the 27 billion pound "fiscal headroom", an amount of extra borrowing possible without breaking a budget deficit cap of 2% of GDP introduced by former finance minister Philip Hammond. TAX CUTS Javid said during his failed bid to lead the Conservative Party that he would prepare for a no-deal Brexit with an emergency budget that would include tax cuts for businesses and individuals. Before he was appointed to the post, Javid said he wanted to cut tax for the lowest earners but would also consider scrapping the top rate of income tax, if he thought it would inject more dynamism into the economy. "The prime minister has also announced there's going to be an emergency budget in the autumn which will be designed to stimulate the economy," Malthouse told Sky News. "What you hope is that a more strongly growing economy will produce greater tax revenue which we can pay for some of the things that we want to do," he said. Malthouse said a pledge to boost police numbers would cost about 500 million pounds ($622 million) in the first year. Malthouse said: "There's certainly headroom in the finances." "We've gone from a situation at the start of 2010 where we were borrowing one pound in every four that the government spent to now borrowing one pound in every thirty-four so we've got a bit of room for manoeuvre."

UK denies emergency budget, after junior minister touts stimulatory plan

Britain&#39;s new finance minister Philip Hammond today ruled out an emergency budget in response to economic turbulence triggered by the country&#39;s vote in favour of exiting the European Union. 
 
Hammond told media that a budget would not be submitted before the British autumn, adding that London&#39;s key financial sector must retain access to the EU single market following Brexit. 
 
Ahead of last month&#39;s EU referendum, Hammond&#39;s predecessor George Osborne suggested that an emergency budget would be required in the event of a Brexit vote because of the risk of recession. 
 
However, he quickly ruled out such an event despite the country voting on June 23 to quit the bloc - and has now quit the government following Hammond&#39;s appointment. 
 
New Prime Minister Theresa May on Wednesday appointed Hammond to replace Osborne as chancellor of the exchequer. 
 
Osborne was the architect of the past six years of British austerity and a close friend of former prime minister David Cameron, while both had campaigned for Britain to remain in the EU. 
 
Hammond, who had been foreign minister in the outgoing government of Cameron, told various media outlets today that there would be no emergency budget. 
 
May &quot;made clear we will do an Autumn Statement (budget) in the usual way, in the autumn, and we will look carefully over the summer at the situation&quot;, Hammond told Sky News. 
 
Speaking to the ITV channel, he said that financial markets &quot;need to know we will do whatever is necessary to keep the economy on track&quot;. 
 
Bank of England meeting 
 
Hammond added that he was meeting today with Bank of England (BoE) governor Mark Carney to assess Britain&#39;s economy. 
 
It comes as the BoE prepares to announce whether it will cut its main interest rate to a new record low level under 0.50 per cent to curb the economic fallout from Brexit. 
 
Following the referendum the pound slumped to a 31-year-low against the dollar, before rebounding slightly. While a weak pound helps exporters, it makes imports more expensive, which in turn can push up inflation. 
 
But while a cut to the BoE&#39;s interest rate may help to boost business investment, it risks further weakening the pound according to analysts. 
 
&quot;There has been a chilling effect,&quot; on markets since the referendum, Hammond told BBC radio today. 
 
&quot;We have seen business investment decisions being paused because businesses now want to take stock, want to understand how we will take forward our renegotiation with the EU.&quot; 
 
Businesses &quot;want to know on what terms they will be able to sell into the single market of the European Union once Britain is outside that Union&quot;, he told the BBC. 
 
Hammond added that during Brexit negotiations with the EU, the government needed &quot;to ensure access to the European Union single market&quot; for London&#39;s financial services. 
 
&quot;It&#39;s not only in London&#39;s interest, it&#39;s in the interest of the EU as well. London provides a crucial financial service,&quot; he added. 
 
Osborne had said following the referendum result that he would seek to slash corporation tax over fears of an exodus of companies from Britain. 
 
Hammond though would not be drawn on Thursday on Osborne&#39;s pledge to cut Britain&#39;s levy on company profits to under 15 per cent from 20 per cent currently. 
 
Following the referendum, Osborne also scrapped the government&#39;s promise for a budget surplus by 2020. 
 
Hammond told the BBC on today that the Conservative government had &quot;to reduce the deficit further, but looking at how and when and at what pace we do that and how we measure our progress in doing that, is something that we now need to consider in light of the new circumstances that the economy is facing.&quot; 
 
(AFP)

'We will do whatever is necessary to keep the economy on track,' Philip Hammond said

Britain's new finance minister Philip Hammond today ruled out an emergency budget in response to economic turbulence triggered by the country's vote in favour of exiting the European Union. Hammond told media that a budget would not be submitted before the British autumn, adding that London's key financial sector must retain access to the EU single market following Brexit. Ahead of last month's EU referendum, Hammond's predecessor George Osborne suggested that an emergency budget would be required in the event of a Brexit vote because of the risk of recession. However, he quickly ruled out such an event despite the country voting on June 23 to quit the bloc - and has now quit the government following Hammond's appointment. New Prime Minister Theresa May on Wednesday appointed Hammond to replace Osborne as chancellor of the exchequer. Osborne was the architect of the past six years of British austerity and a close friend of former prime minister David Cameron, while both had campaigned for Britain to remain in the EU. Hammond, who had been foreign minister in the outgoing government of Cameron, told various media outlets today that there would be no emergency budget. May "made clear we will do an Autumn Statement (budget) in the usual way, in the autumn, and we will look carefully over the summer at the situation", Hammond told Sky News. Speaking to the ITV channel, he said that financial markets "need to know we will do whatever is necessary to keep the economy on track". Bank of England meeting Hammond added that he was meeting today with Bank of England (BoE) governor Mark Carney to assess Britain's economy. It comes as the BoE prepares to announce whether it will cut its main interest rate to a new record low level under 0.50 per cent to curb the economic fallout from Brexit. Following the referendum the pound slumped to a 31-year-low against the dollar, before rebounding slightly. While a weak pound helps exporters, it makes imports more expensive, which in turn can push up inflation. But while a cut to the BoE's interest rate may help to boost business investment, it risks further weakening the pound according to analysts. "There has been a chilling effect," on markets since the referendum, Hammond told BBC radio today. "We have seen business investment decisions being paused because businesses now want to take stock, want to understand how we will take forward our renegotiation with the EU." Businesses "want to know on what terms they will be able to sell into the single market of the European Union once Britain is outside that Union", he told the BBC. Hammond added that during Brexit negotiations with the EU, the government needed "to ensure access to the European Union single market" for London's financial services. "It's not only in London's interest, it's in the interest of the EU as well. London provides a crucial financial service," he added. Osborne had said following the referendum result that he would seek to slash corporation tax over fears of an exodus of companies from Britain. Hammond though would not be drawn on Thursday on Osborne's pledge to cut Britain's levy on company profits to under 15 per cent from 20 per cent currently. Following the referendum, Osborne also scrapped the government's promise for a budget surplus by 2020. Hammond told the BBC on today that the Conservative government had "to reduce the deficit further, but looking at how and when and at what pace we do that and how we measure our progress in doing that, is something that we now need to consider in light of the new circumstances that the economy is facing." (AFP)

British finance minister rules out emergency budget

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