Chancellor Philip Hammond: No 'spending sprees' in Budget

The Chancellor is expected to put aside a 'war chest' of as much as £60bn in his Budget Credit: PA
  • Video report by ITV News political correspondent Carl Dinnen

Philip Hammond has said there will be no "spending sprees" announced in the Budget, which will instead focus on economic resilience after Brexit.

The Chancellor is expected to put aside as much as £60 billion to deal with any "unexpected challenges" after Article 50 has been triggered.

Writing in The Sunday Times, the Chancellor emphasised fiscal discipline, saying:

But in a reminder of the difficulties strict fiscal discipline can bring with it, tens of thousands of people took to the streets of London on Saturday to protest cuts and closures in the NHS.

The Chancellor said his approach would mean "flexibility ... throughout the remainder of this parliament to ensure our economic growth".

On leaving the EU, Mr Hammond wrote: "We may face unexpected challenges in the months and years ahead as we forge our vision of Britain's future in the world."

Such potential challenges have prompted Mr Hammond to set aside £27 billion for the end of the parliament, but the current better-than-expected economic performance means the figure could nearly double to £60 billion.

Responding to reports that Mr Hammond is seeking to put together a "war chest" to deal with Brexit, Liberal Democrat leader Tim Farron said: "This shows that Hammond knows Brexit is going to send a torpedo through Britain's finances.

"It is clear you can't have a strong economy and strong public services with a hard Brexit. It is ridiculous to see the Chancellor trying to fritter away money this week, at the same time as the prime minister continues to drag Britain towards a hard Brexit."