In the run up to the EU referendum, former chancellor George Osborne announced that public spending would be cut and that taxes would increase in an emergency Budget. This would tackle a £30bn “black hole” that would come about in the event of the UK voting to leave the EU, and would includes measure such as raising income and inheritance taxes.This announcement was based on predictions from the Institute for Fiscal Studies, which claimed a Brexit would lead to the loss of £20bn-£40bn from public finances – extending austerity by two more years. However, Hammond has now ruled out the emergency Budget, suggesting it was best to monitor the economic situation over the summer before setting out any spending targets. Read more about Theresa May’s new cabinet:
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