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Budget 2017: Hammond sets aside further £3bn for Brexit

Budget 2017: Hammond sets aside further £3bn for Brexit

Chancellor Philip Hammond has revealed that he will set aside a further £3 billion for Brexit over the next two years. 

In his Budget statement, he said that there has already been £700 million spent on the process and he is ready to allocate further when needed. 

He stated: 'No one should doubt our resolve.' 

He said that the biggest boost that they can provide to businesses and families is delivering prime minister Theresa May's vision adding that he is preparing for every outcome. 

KPMG welcomed the additional Brexit funding, with the firm's head of international tax, Melissa Geiger, describing the move as 'prudent', preparing for all eventualities.

'Our clients will welcome the news that the chancellor is taking a prudent approach to Brexit and, like them, is planning for all possible Brexit scenarios,' she said.  

'Businesses will be hoping the additional £3 billion the chancellor has set aside for Brexit preparations can be channelled into the infrastructure, IT and training that will be needed to make Britain more competitive.'

However, State Street global head of macro strategy Michael Metcalfe, warned the dowwngrading of UK GDP growth will more than offset this additional contingency fund.

He said: 'The government has committed funds to help with the preparation for Brexit contingency planning, but the real challenge for UK markets revealed in the budget came from the Office for Budget Responsibility (OBR) and the significant downgrades to the UK growth outlook.

'Still high inflation and an expected weakening in growth provide a potentially troubling backdrop for markets even without the political uncertainties created by Brexit.'


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