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Budget 2017: No 'spending sprees', Hammond warns Budget 2017: No 'spending sprees', Hammond warns
(about 2 hours later)
There will be no "spending sprees" in Wednesday's Budget, Chancellor Philip Hammond has warned.There will be no "spending sprees" in Wednesday's Budget, Chancellor Philip Hammond has warned.
Writing in the Sunday Times, he said the economy had proven to be "robust" but there was still a need for fiscal discipline ahead of leaving the EU. Mr Hammond said any surplus cash would be used to ensure the UK had enough "gas in the tank" for the coming years.
Mr Hammond said the country needed to "get back to living within our means" and reduce its borrowing. He also acknowledged social care budgets were under particular pressure but said this was "not just about money".
Labour said the government was putting money aside to prepare for Brexit which should instead be spent on the NHS.
Speaking ahead of his first Budget, Mr Hammond told the BBC's Andrew Marr Show:
The government has been under pressure to provide more money for the NHS and social care.The government has been under pressure to provide more money for the NHS and social care.
On Saturday tens of thousands of people marched in London to protest against "yet more austerity" in the health service.On Saturday tens of thousands of people marched in London to protest against "yet more austerity" in the health service.
But Mr Hammond criticised those who wanted higher borrowing as "confused" and "reckless". Mr Hammond said the economy was "performing extremely well" but that spending reductions were putting pressure on services.
This was particularly the case with adult social care, he said, but added that some councils were performing "extremely well" while others were struggling.
The chancellor did say there was a case for taking a long-term, strategic view on how the costs of an ageing population can be met, but said that in the short term: "This is about good practice as well as budgets."
Writing in the Sunday Times, he said that calls for "massive borrowing to fund huge spending sprees" were "reckless, unsustainable and unfair on our young people who would be left to deal with the consequences".
Public sector net debt - not including public sector banks - was £1.68tn at the end of January 2017, equivalent to 85.3% of GDP, according to the Office for National Statistics.Public sector net debt - not including public sector banks - was £1.68tn at the end of January 2017, equivalent to 85.3% of GDP, according to the Office for National Statistics.
It has increased by £91.7bn since January 2016, the ONS said.It has increased by £91.7bn since January 2016, the ONS said.
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Mr Hammond said the economy had "confounded expectations" and shown itself to be "remarkably resilient", but he warned this was no time for "complacency".
"As we begin our negotiations with the EU we are embarking on a new chapter in our history," he wrote.
"We need to maintain our commitment to fiscal discipline and to strengthen our economic position as we forge our vision of Britain's future in the world."
Mr Hammond last year abandoned the timetable of his predecessor, George Osborne, to eliminate the deficit by 2020, instead pledging to invest in homes and transport.Mr Hammond last year abandoned the timetable of his predecessor, George Osborne, to eliminate the deficit by 2020, instead pledging to invest in homes and transport.
He said this approach - to bring income and spending back into balance between 2020 and 2025 - would leave flexibility over the next few years. Also on the Marr show was Labour shadow chancellor John McDonnell, who said the National Living Wage should be increased to give workers a "pay rise".
But Labour leader Jeremy Corbyn said the NHS was in "crisis" and called for the government to provide more funding. He said this, along with reversing changes to disability benefits and a cash injection for the NHS, could be funded by reversing £70bn in corporation, capital gains and inheritance tax cuts.
Speaking to protesters in Parliament Square on Saturday, he said the "crisis" was caused by a "political choice" made by the government. He also said Labour wanted to abolish university tuition fees and was looking at how this could be afforded.