Esther McVey avoids question on Universal Credit ahead of budget plan |
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The Chancellor will pump more money into the NHS, social care, mental health and the armed forces today as he insists the government's careful stewardship of the economy has given him more room for manoeuvre. Delivering a crucial pre-Brexit Budget, he could also herald a 'digital tax' on giants like Amazon and Facebook that have been accused of failing to pay their share, which could help find funds to head of a mounting Tory revolt over the flagship Universal Credit benefit reforms. But Mr Hammond must tread a perilous path between drawing a line under nearly a decade of austerity and keeping the deficit under control. He is thought to have around £13billion more in the locker thanks to better-than-expected tax receipts, which could stave off the need for mooted tax hikes such as curbs on pension reliefs. However, the Chancellor has already warned that this Budget assumes that there will be a Brexit deal - and failure in the knife-edge negotiations with Brussels will mean another financial package is needed to brace the country.
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