This morning, Philip Hammond, the British Chancellor, has signalled an end to austerity, ahead of his Spring Statement that is scheduled this week.
The chancellor has said that there is “light at the end of the tunnel.”However, he said that the government will still take a balanced approach to spending.
Talking on the Andrew Marr show on BBC, Hammond stated: “There is light at the end of the tunnel because what we are about to see is debt starting to fall after it’s been growing for 17 continuous years.
“That’s a very important moment for us, but we are still in the tunnel at the moment, we have to get debt down, we’ve got all sorts of other things we want to do, we’ve taken a balanced approach over the last couple of fiscal events, using flexibility that we had to continue paying down debt but also to provide additional support to our public services, to invest in Britain’s future and to reduce taxes for families and small businesses who are feeling the pressure.”
Hammond is scheduled to deliver his Spring Statement on Tuesday. It will include economic forecasts from the Office for Budgetary Responsibility. However, Hammond has said that there will be no major policy announcements.