British Finance Minister Philip Hammond will use the presentation of the budget on Wednesday to announce that the higher tax revenues, as a result of better than expected economy, will be used to accumulate reserves of 60 billion GBP. They will be used to overcome uncertainty about Brexit, instead of increasing spending on national health care. The Ministry of Finance allocated additional 1.3 billion GBP for welfare, but warned that 12 billion GBP must be immediately redirected to healthcare, due to severe crisis in the sector.
Philip Hammond warned that Britain would be ready to “fight back” and not “to hide in the corner” if trade deal with the EU is not reached. The government will do “everything possible” to restore the British economy.
“If there is anyone in the European Union, who believes that if we do not reach a deal with the European Union, if we do not continue to work in close cooperation and Britain will simply hide like a wounded animal, it will not happen”, said Philip Hammond.
Hammond warned that although the economy is performing better than expected, there is still a deficit. However, he assured that government will continue working to stimulate economic growth.
The British Finance Minister also warned that problems in public services that are “under pressure” are not only related to money and the problems resulting from aging populations require more complex solutions. There are arguments for taking a longer-term position to fund the service associated with an aging population.