The Chancellor Philip Hammond should take the opportunity of lower than expected borrowing to build up a Brexit buffer in an effort to safeguard the UK against future economic shocks, according to an economist at major accountancy firm PwC. The Spring Statement, due to be delivered by Mr Hammond on Tuesday is expected to confirm that public borrowing has significantly undershot the prediction of £49.9bn from the Office for Budget Responsibility. The latest figures suggest that the figure could be nearly £10bn less than the independent spending watchdog, the OBR, had calculated. John Hawksworth of PwC said that a prudent Chancellor would “keep any such windfall in reserve as a buffer against future economic shocks, including uncertainties around the outcome of the Brexit negotiations”. Mr Hammond said in last year’s November Budget that he would add to the Brexit war chest, taking the total set aside to some £3.7bn, in order to prepare the UK for the full range of possible scenarios. Political uncertainty arising from Brexit negotiations has led businesses to put off investments, according to the latest Business Barometer survey from Lloyds bank, with 42pc of firms holding back on projects. Gareth Oakley of Lloyds said that small firms would be looking for “reassurance” as to how the economy was faring from the Chancellor. They were also hoping for “ further clarity” on the likely Brexit agreement.
The Chancellor of the Exchequer, Philip Hammond, should add spring ($14bn) saved from lower public borrowing to the country's £3bn Brexit war chest as a "buffer against future economic shocks", said John Hawksworth of PwC. According to a survey by Lloyds bank, 42% of businesses are holding back on investment projects because of uncertainty about Brexit, while smaller firms were looking for "reassurance" and "further clarity" from Hammond's the estimated £10bn statement.