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The United Kingdom’s chancellor of exchequer Philip Hammond said that the country won’t abandon from the path of fiscal discipline, mainly pursued by his predecessor George Osborne. Speaking on Sky News from the Tory party conference in Birmingham, Mr. Hammond said that a new approach to fiscal policy is required just like he previously said that George Osborne’s target for budget surplus by the end of current parliament doesn’t make sense. However, he shrugged off any suggestions that the government is abandoning austerity. He said, “What we can’t do is send a signal we are abandoning fiscal discipline. We are not. We are maintaining fiscal discipline……Public spending needs to remain under control. We do need to bring the public finances back to balance but we need to do it in a way that reflects the circumstances the country now faces.”
Chancellor also said that the UK needs a plan that would boost consumer confidence and he would set out a credible framework for the economy in the highly anticipated autumn statement.
The sterling has dropped to the lowest level since the referendum as Prime Minister May laid out the path towards Brexit in the conference. The pound is currently trading at 1.288 against the dollar.
