The British Chambers of Commerce has urged Chancellor of the Exchequer Philip Hammond to approve a stimulus package of £4.6 billion as part of his Autumn Statement. The organisation stated that this package would help businesses and contractors profoundly as Britain prepares to exit the European Union.
However, now it appears that IT contractors and other freelancers should have lobbied Secretary of State for International Trade Liam Fox rather than the Chancellor.
Reports suggest that Fox is against any stimulus package as part of the Autumn Statement, and this has put him at odds with Hammond. It is expected that the Chancellor will unveil an economic package worth £20 billion to improve infrastructure across the UK.
Fox believes that if Hammond introduces an economic stimulus, it will cause panic. People will assume that exiting the European Union will have an adverse effect on the UK economy.
Fox is claimed to have said that there is no need for a stimulus package as part of the Autumn Statement. He suggested that the Autumn Statement should focus on a steady budget rather than opting for an emergency-type budget, as that is what the economic stimulus would be perceived as.
By introducing an economic stimulus, Hammond is trying to shore up Britain’s economy so that it can withstand any uncertainty that may arise when the UK formally leaves the European Union. The Chancellor stated that without a stimulus, Britain would experience just a 0.8 per cent growth in 2017. This growth is lower than the 2.5 per cent that Hammond had predicted had the referendum results been different.
Ameet Gill, who was the head of communications when David Cameron was Prime Minister, stated that the Government’s promise not to increase taxes until 2020 was not the wisest economic policy. Hence, the country needs a stimulus package to get the economy moving.