Time For An Economic Philip

 

 

With Theresa May’s feet firmly secured under the Number 10 dining table, she moved sharply and ruthlessly in arranging her new cabinet. Of significant importance was the appointment of her new neighbour / new Chancellor of the Exchequer……Philip Hammond.

 

In economic terms, this is a big one……it is in the top 10 most pivotal positions in the world. The appointment is that critical.

 

What we do know and what Philip Hammond is acutely aware of is that “the immediate impact to the UK economy comes from businesses pausing investment decisions”. This leads to economic slowdown, which in turn could lead the UK into a recession.

 

What we don’t know is what economic tricks Philip Hammond has up his sleeve to provide short-term economic stimulus. A kind of economic red bull if you will. The obvious action would have been to hold an emergency Budget but he has confirmed that he will wait until the Autumn Statement to set out his plans. The concern is the damage that will be done by delaying.

 

Philip Hammond has an opportunity for some radical tax / funding / investment innovations……with so little experience, will he get the balance right?