Chancellor Philip Hammond to reset George Osborne's fiscal policies

Helen Cahill
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Ministers Attend David Cameron's Last Cabinet Meeting
Chancellor Philip Hammond will be taking a different direction from his predecessor George Osborne (Source: Getty)

Chancellor Philip Hammond will say today that he is building a "new plan" for the "new circumstances" Britain is in, promising to break away from his predecessor's policies.

Hammond is expected to say Osborne's approach was right "at that time", but that things are set to change because "when times change, we must change with them", according to reports.

He will still "restore fiscal discipline" but has said this will be put in place in a "pragmatic way that reflects the new circumstances we face."

Read more: Article 50 fallout: Sterling falls to seven-week low

"We must expect some turbulence as we go through this negotiating process," he said on Sky News this morning. "We need to support the economy to make sure than consumer confidence remains."

In the weeks following the Brexit vote, the new Chancellor ditched Osborne's plan to bring the UK finances into surplus by 2020.

Today, he will unveil a £5bn housebuilding stimulus package at the Conservative party conference. The package is intended to support small and medium sized developers and encourage housebuilders to use surplus public land to build. Hammond expects to build 25,000 new homes during the parliament.

Prime Minister Theresa May has also been outlining her plans for the country in a speech to the Conservative party conference yesterday.

She said she would trigger Article 50 by the end of March 2017, meaning the UK will be out of the EU by 2019. May also signalled that she will not be prioritising single market access, and intends to take full control of immigration.

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