{"id":7432,"date":"2019-02-12T09:32:55","date_gmt":"2019-02-12T09:32:55","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/hammonds-brexit-deal-dividend-not-credible-mps-say\/"},"modified":"2019-02-12T09:32:55","modified_gmt":"2019-02-12T09:32:55","slug":"hammonds-brexit-deal-dividend-not-credible-mps-say","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/hammonds-brexit-deal-dividend-not-credible-mps-say\/","title":{"rendered":"Hammond’s Brexit ‘deal dividend’ not credible, MPs say"},"content":{"rendered":"\n
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\n The Treasury Committee said the government’s aim of eliminating the budget deficit had “no credibility”
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MPs have dismissed the chancellor’s forecast of a Brexit “deal dividend” of lower taxes and higher spending.<\/p>\n

The Treasury Committee said it was “not credible” to describe any resultant economic boost from a Brexit deal as a “dividend”. <\/p>\n

In their report on the 2018 Budget<\/a>, MPs said what was being talked about was “avoiding something really very bad”.<\/p>\n

They also said the government’s aim of eliminating the budget deficit had “no credibility” and should be abandoned.<\/p>\n

Committee chair Nicky Morgan said Chancellor of the Exchequer Philip Hammond had said that in the event of a deal being struck there would be 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”.<\/p>\n

However, MPs pointed out that the Office for Budget Responsibility (OBR) had previously said it was “odd” to refer to this as a dividend. <\/p>\n

“The OBR already assumes an orderly Brexit, so there won’t be a ‘deal dividend’ beyond the forecast just by avoiding no-deal, ” added Ms Morgan.<\/p>\n

“Business confidence may improve with increased certainty, but it’s not credible to describe this as a dividend.”<\/p>\n

The government has also said it is aiming to return the public finances to balance “at the earliest possible date” in the next Parliament. <\/p>\n

But the Treasury Committee said Mr Hammond “could have achieved balance by 2023-24 in the Budget without further fiscal tightening, but instead he chose to spend more, largely through increased funding for the NHS”.<\/p>\n

“It is clear that the fiscal objective now has no credibility, so it cannot be used by Parliament to hold government to account.<\/p>\n

“It should be replaced before the next Budget with something that accurately reflects government policy and priorities, which clearly do not include running a budget surplus,” the committee added.<\/p>\n

Shadow chief secretary to the Treasury, Peter Dowd, said the Treasury Committee had “shone a light on the government’s false promises and economic fictions”.<\/p>\n

Describing the report as “scathing”, Mr Dowd said: “The chancellor must take no-deal off the table, and use his Spring Statement to finally end the disastrous austerity policies which have done so much damage to the economy and our society.”<\/p>\n\n

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Source<\/a> by [author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Image copyright AFP Image caption The Treasury Committee said the government’s aim of eliminating the budget deficit had “no credibility” MPs have dismissed the chancellor’s forecast of a Brexit “deal dividend” of lower taxes and higher spending. The Treasury Committee said it was “not credible” to describe any resultant economic boost from a Brexit deal … <\/p>\n","protected":false},"author":0,"featured_media":7433,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7432","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7432","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=7432"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7432\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/7433"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=7432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=7432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=7432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}