Published: Thu, July 14, 2016
Economy | By Melissa Porter

New UK Treasury chief says there'll be no emergency budget

New UK Treasury chief says there'll be no emergency budget

New British Treasury chief Hammond tried to sound a reassuring note Thursday, pledging that he would not introduce an emergency national budget - even though there are question marks hanging over the economy following the country's decision to leave the EU.

Philip Hammond took over as Britain's new finance minister on Wednesday, putting him in charge of the world's fifth-largest economy as it risks sliding into recession after voters chose to leave the European Union last month.

Businesses "want to know on what terms they will be able to sell into the single market of the European Union once Britain is outside that Union", he told the BBC.

Appearing on ITV's Good Morning Britain, he said he would be meeting the Bank of England governor on Thursday to "assess where we are".

He was formerly Foreign Secretary, a position now held by Boris Johnson.

Last year, the autumn statement was delivered in late November.

Theresa May, the newly appointed prime minister of Britain, revealed the new United Kingdom cabinet Wednesday, appointing ally Philip Hammond as Chancellor of the Exchequer and Boris Johnson as foreign secretary. He has previously served as Transport Secretary and Defence Secretary.

In what may be an early attempt to place blame for a slowing economy with his pro-Brexit colleagues, Hammond said that the prospect of European Union negotiations was hurting confidence.

Osborne had aimed to turn Britain's budget deficit - which stands at about 4% of gross domestic product - into a surplus by 2020 although he said recently that he would no longer pursue that target given the expected hit to the economy from the country's decision to leave the EU.

Before becoming a politician, Mr Hammond had a career in business - in the medical equipment industry.

"The queen has been pleased to approve the appointment of Philip Hammond MP as chancellor of the exchequer", Downing Street said in a statement.

He's got a bigger job now and is prepared to take us - cautiously - in a different direction.

Five years on he has been welcomed back into the ranks by the new Prime Minister.

"The number one challenge is to stabilize the economy, send signals of confidence about the future, the plans we have for the future, to the markets, to businesses, to global investors", Hammond told Sky News.

Mr Hammond added that Britain would have to "tread carefully" in trying to thrash out new trade deals with the rest of the world, given that Britain will remain a full European Union member up until the time it leaves.

Hammond had been the foreign minister in the outgoing government of David Cameron since 2014.

The biggest surprise was the resurrection of Boris Johnson, who was given Mr Hammond's old role as Foreign Secretary.

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