With an eye to the upcoming vote on the Brexit divorce deal with Brussels, Philip Hammond also held out the prospect of even more spending to come if the country secures an orderly exit from the EU, promising MPs a \u201cdouble deal dividend\u201d for the economy and public spending if they back a deal and avoid crashing out of the European Union in March 2019.<\/p>\n
The twin-pronged message \u2014 of an end to austerity and an extra Brexit deal bonus for voters \u2014 in the governments last annual budget before the U.K. quits the bloc comes at a time of maximum danger for May. As well as seeking a deal with Brussels that is acceptable both in the U.K. parliament and to the country more widely, the prime minister must also neutralize the threat from Jeremy Corbyns Labour Party, which continues to sit within touching distance of the government in most polls.<\/p>\n
However, according to an exclusive snap poll carried out for POLITICO by Hanbury Strategy, the government only successfully landed one of these two core budget messages. While there is overwhelming public support for the governments decision to end the public spending squeeze, which has been in place since 2010, the poll showed continued skepticism about warnings of the risks of a no-deal Brexit.<\/p>\n
\nThe POLITICO\/Hanbury poll shows the country remains as divided as ever over Brexit.<\/p>\n<\/blockquote>\n
In an apparent vindication of Mays decision to draw a line under the post-crash era of austerity, 57 percent said the government should spend more money rather than balance the books, with just 12 percent saying the priority should be getting back into the black. By almost four to one \u2014 57 percent to 14 percent \u2014 voters also support the governments decision to spend almost all the extra cash from an unexpected boost in tax receipts on health care rather than other public services.<\/p>\n
However, according to the poll of 500 adults carried out between 6.30 p.m. and 9 p.m. on Monday, the public is still split on the chancellors warning that a failure to reach a Brexit agreement with Brussels could jeopardize future spending increases on public services.<\/p>\n
Nothing has changed<\/h3>\n
The POLITICO\/Hanbury poll shows the country remains as divided as ever over Brexit, with 52 percent either not buying the warning that leaving the EU without a deal would negatively impact spending on public services or saying reduced public spending would be a price worth paying.<\/p>\n
In an echo of the 2016 EU referendum<\/a>, 48 percent say they agree with the government that no deal will mean less money for public services and this is not a price worth paying.<\/p>\n
The findings are a blow to the chancellor, who told MPs that securing a Brexit deal with the EU would deliver a \u201cdouble deal dividend\u201d to the U.K. economy.<\/p>\n
With the chances of no-deal rising, Hammond has kept aside \u00a315 billion of \u201cfirepower\u201d to spend in case the U.K. crashes out of the EU. In the event that May can broker a deal with Brussels, Treasury officials said this money would be freed up to be spent on public services.<\/p>\n
\u201cWere at a pivotal moment in our EU negotiations and the stakes could not be higher,\u201d Hammond said. \u201cGet it right and we will not only protect Britains jobs, businesses and prosperity but we will also harvest a double deal dividend: a boost from the end of uncertainty and a boost from releasing some of the fiscal headroom that I am holding in reserve at the moment.\u201d<\/p>\n
Conservative Brexiteer MPs concerned that the prime ministers Brexit plan will bind the U.K. too closely to EU rules will likely jump on the findings to argue that the fallout from a no deal can be contained.<\/p>\n
Buying time<\/h3>\n
The immediate effect of Mondays budget, however, is that it has bought the prime minister more time.<\/p>\n
There had been reports that Northern Irelands Democratic Unionists, who prop up Mays government in Westminster, were willing to vote down the budget if the prime minister agreed Brexit withdrawal terms with the EU that created an economic border between Great Britain and Northern Ireland. This threat evaporated.<\/p>\n
Hammond singled out Northern Ireland for investment, with \u00a3350 million set aside for the Belfast region, among other measures. The partys Westminster leader, Nigel Dodds, tweeted that the DUPs confidence and supply agreement with the government was \u201cdelivering again.\u201d<\/p>\n
One minister said the giveaway budget revealed just how precarious the governments position now was.<\/p>\n
\u201cIt just shows where we are,\u201d he said. \u201cThis was all about soft-soaping the parliamentary party and the DUP. The truth is now, we are only able to get something through parliament now if we throw cash at it.<\/p>\n
\nWhile the public remains skeptical of continued warnings about the economic cost of a disorderly Brexit, there was widespread support for the tax and spending measures in the budget.<\/p>\n<\/blockquote>\n
\u201cThe whole budget was designed to avoid a parliamentary vote which we might lose. It means you cant raise taxes or cut spending. It highlights the weakness of the government. We could have said, OK, lets raise taxes for some of the spending, but no. Nothing that involves a tax rise or a spending cut is possible. This is the new reality \u2014 all the power is with parliament.\u201d<\/p>\n
Another senior Tory MP said Hammond had been left with little choice but to turn on the spending taps, insisting he needed to \u201cfight the austerity label\u201d that was killing the Tories. \u201cHave you seen the Labour ads?\u201d he said.<\/p>\n
A third senior Tory \u2014 another minister \u2014 said it was a \u201cone-nation budget at a time of uncertainty\u201d but admitted it did not leave much room to absorb an economic downturn. \u201cThis is why as smooth a Brexit as possible is what we need.\u201d<\/p>\n
In analysis released alongside Mondays budget, the governments independent economic forecaster, the Office for Budget Responsibility, warned a \u201cdisorderly [Brexit] could have severe short-term implications for the economy.\u201d However, it said: \u201cThe scale would be very hard to predict, given the lack of precedent,\u201d the OBRs accompanying forecast document said.<\/p>\n
<\/p>\n
British Chancellor of the Exchequer Philip Hammond poses for pictures with the Budget Box as he leaves 11 Downing Street | Daniel Leal-Olivas\/AFP via Getty Images<\/p>\n
The OBR called a no-deal Brexit \u201cthe most immediate and significant\u201d downside risk currently affecting the British economy.<\/p>\n
While the public remains skeptical of continued warnings about the economic cost of a disorderly Brexit, there was widespread support for the tax and spending measures in the budget.<\/p>\n
The proposed new \u201cGoogle tax\u201d<\/a> on giant U.S. tech companies is extremely popular with the country, according to the POLITICO\/Hanbury Strategy poll, with over nine in 10 supporting it. One third of those polled said it does not go far enough.<\/p>\n
Overall, the majority of the country \u2014 56 percent \u2014 said Mondays budget will be neither good nor bad for their family. However, in a boost for the government, the number of people who think it will be good is almost three times as many as those who think it will be bad \u2014 33 percent to 11 percent.<\/p>\n
Hanbury Strategy \u2014 a member of the British Polling Council \u2014 polls people on their smartphones by advertising on up to 60,000 apps and targeting different types of handsets.<\/p>\n
Read this next: Angelas endgame: How Merkels gamble will play out<\/a><\/em><\/h2>\n
Original Article<\/a><\/p>\n
[contf] [contfnew]
<\/p>\n
<\/a><\/h5>\n","protected":false},"excerpt":{"rendered":"
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