In World Economy News 15/07/2016
The newly appointed U.K. Chancellor of the Exchequer Philip Hammond said the country will not have a post-Brexit emergency budget.
In a string of interviews given to various British media outlets, the former foreign secretary said the “Brexit” vote sent a shock to the financial system, rattling confidence.
Speaking to the BBC, Hammond said the new government aims to stabilize and support the economy in the coming months to restore confidence as soon as possible.
In an interview to the Sky News, he said the new government would “reshape” the approach to public finances, signaling a departure from his predecessor George Osborne’s austerity policies.
He also did not confirm whether he would retain Osborne’s decision to cut the corporation tax to below 15 percent to attract business into the country, the Sky News reported.
“Britain is open for business. We are not turning our backs on the world,” Hammond told Sky News.
Hammond also reportedly said that the U.K. will leave the single market, but will re-negotiate access.
The new chancellor will meet Bank of England Governor Mark Carney on Thursday morning to evaluate the economic situation.
The Bank of England is set to announce its latest interest rate decision on Thursday and is widely expected to reduce the rate by 25 basis points to 0.25 percent.
Commenting on the appointment of the prominent “leave” campaigner Boris Johnson as the foreign secretary, Hammond said he would be “very good” in the role.
Johnson’s appointment in the new PM Theresa May’s cabinet came as a big surprise for many.
Amber Rudd’s promotion to home secretary from energy secretary also was a surprise to some. She joined the cabinet only last May.
Liam Fox was appointed the secretary of state for international trade, while David Davis was named the secretary for exiting the EU or the “Brexit” minister.
