- Mr Hammond said debt was still too high and had to be brought down
- The Chancellor ruled out extra spending in tomorrow’s Spring Statement
- He suggested both the Ministry of Defence and NHS could get cash boosts
The Chancellor ruled out extra spending in tomorrow’s Spring Statement, but said there was ‘light at the end of the tunnel’
Philip Hammond yesterday cleared the way for an NHS giveaway in the Autumn Budget as he signalled he could be ready to loosen the purse strings within months.
The Chancellor ruled out extra spending in tomorrow’s Spring Statement, but said there was ‘light at the end of the tunnel’.
He suggested both the Ministry of Defence and NHS could get cash boosts in the Budget later this year.
Mr Hammond said debt was still too high and had to be brought down.
‘There is light at the end of the tunnel because what we are about to see is debt starting to fall after it has been growing for 17 continuous years.
‘That is a very important moment for us but we are still in the tunnel at the moment,’ he told the BBC’s Andrew Marr Show.
‘We have a debt of £1.8trillion – 86.5 per cent of our GDP. All the international organisations recognise that is higher than the safe level.’
Economists expect Mr Hammond to announce that borrowing is set to be around £7billion lower in 2017-18 than had been predicted.
But he made clear that he would not be making any changes to spending in his statement.
He suggested both the Ministry of Defence and NHS could get cash boosts in the Budget later this year (above: he presents the red case en route to Parliament to deliver his 2017 budget)
‘If there is … the space to do something, we will decide in the autumn how we are going to use that,’ he said.
The Chancellor added that he accepted there were financial pressures on defence, and told ITV’s Peston on Sunday that ministers were close to finalising a pay deal with NHS workers in England that would give many their first substantial salary increase since 2010.