UPDATE 1-UK’s Javid plans first post-Brexit budget on Nov 6

UPDATE 1-UK’s Javid plans first post-Brexit budget on Nov 6

(Adds background)

LONDON, Oct 14 (Reuters) – British finance minister Sajid Javid said on Monday he planned to deliver the first post-Brexit budget statement on Nov. 6, less than a week after the country’s deadline for leaving the European Union.

“I will be setting out our plan to shape the economy for the future and triggering the start of our infrastructure revolution,” Javid said in a statement.

In the event of a no-deal Brexit, the government would act quickly to outline its approach and “take early action to support the economy, businesses and households,” followed by a budget in the following weeks, the government said.

Prime Minister Boris Johnson says he will take Britain out of the EU on Oct. 31, with or without a deal. But lawmakers have passed legislation which they say will force him to seek a delay if no transition agreement is struck in time.

Javid, who took office in July, has already announced the biggest increase in day-to-day public spending in 15 years, putting borrowing on course to overshoot a cap set by his predecessor, Philip Hammond.

Javid has suggested he is prepared to borrow more in the future to take advantage of record-low borrowing costs.

Britain has steadily cut its budget deficit from almost 10% of gross domestic product in 2010 to just under 2% now.

But analysts have warned that Javid could end up weakening Britain’s budget credibility by making big spending pledges at a time when the economy has slowed and the outcome of Brexit remains so unclear.

(Writing by William Schomberg; editing by Kate Holton)


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