UK Chancellor Philip Hammond is set to deliver his first Autumn Statement on November 23. It is the Chancellor's first opportunity to outline his priorities for taxes and spending in the wake of the Brexit vote.
UK’s manufacturers expect the Chancellor will use the opportunity to tackle the fallout from political uncertainty and reassure nervous businesses by announcing new measures to boost investment and growth.
The British Bankers’ Association (BBA) has urged the Chancellor to fight for passporting rights and influence from outside the bloc and called for clarity on possible “transitional arrangements” with the EU. The group also warned that the current tax system which placed an unfair burden on the sector could result in the UK “ceasing to be the best place for banking business to be located".
EEF, the trade body which represents Britain’s engineering and manufacturing businesses, expects Hammond to introduce a “moderate fiscal stimulus package” which would support UK manufacturers, including increasing funding to support exports, and increase tax credits for research and development work.
After having scrapped predecessor George Osborne’s pledge to balance the books by the end of this parliament, Hammond now has some leeway to borrow more money. Borrowing this year is estimated to hit £60.5bn, up from an official projection of £55.5bn in March. Hammond will likely "prepare for more austerity" in the next parliament.
“The Autumn Statement on 23 November may provide market- positive headlines on infrastructure spending that could further support GBP,” says Nomura


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