UK’s Javid Set To Boost Spending As Prospect Of Election Grows

www.oann.com | 9/3/2019 | Staff
LONDON (Reuters) – British finance minister Sajid Javid will announce increases in public spending on Wednesday, preparing the ground for a possible snap election call by Prime Minister Boris Johnson who is seeking a way to break resistance to his Brexit plans.

Javid, in his first major speech since taking over the public purse strings in July, will promise more money for what he says are “the people’s priorities” – education, health and the police – after a decade of tight spending controls that has frustrated voters.

Johnson - Spending - Round - Decade - Javid

Johnson has promised the “most ambitious spending round for more than a decade” although Javid, a former Deutsche Bank managing director, says he will stick to the fiscal rules of his predecessor, at least for Wednesday’s one-year spending plan.

Javid’s spending round speech in parliament, expected around 1200 GMT, will go ahead as planned despite lawmakers opposed to a no-deal Brexit taking control of the legislature’s agenda during the day, government officials said.

Johnson - Tuesday - Election - Way - Impasse

Johnson said late on Tuesday that an election would be the only way to resolve the parliamentary impasse over Britain’s departure from the European Union, if lawmakers vote to force him to seek a delay to Brexit.

Javid has a bit of room to increase borrowing to fund his planned spending increases because Britain has cut its budget deficit from almost 10% of gross domestic product in 2010 to just over 1% now.

Britain - Budget - Credibility - Spending - Pledges

But he could end up weakening Britain’s budget credibility by making big spending pledges at a time when the economy is at risk of recession and the outcome of Brexit remains so unclear, analysts have warned.

“Making big fiscal announcements in a period of great economic uncertainty means we...
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