Philip Hammond's £60bn Brexit warchest is sensible, says thinktank director

Phillip Hammond's 'sensible to have a contingency plan' in £60bn 'war chest' in budget , says think tank director Shanker Singham

Phillip Hammond is expected to unveil the budget this week, included a reported sum of money to guard against bad negotiations with the EU

Monday, March 6, 2017

A leading think tank director has said Phillip Hammond's £60bn 'war chest' for Brexit is a "sensible" move ahead of the negotiations. 

The Chancellor of the Exchequer is reportedly to use his first budget presentation to create a £60bn fund as security in the event the UK doesn't get a solid trade deal from the European Union in exit negotiations. 

It is reportedly to guard against the possibility of "economic turbulence" as the negotiations proceed.

Shanker Singham, the director of Economic Policy & Prosperity Studies at the Legatum Institute think tank and international trade negotiator, said this was a 'sensible' move in an interview with Julia Hartley-Brewer.

He said: "You can’t control European cooperation. We can’t control that.

"It’s sensible to have a contingency plan with respect to the next two years of negotiation.

"The difficulty is we don’t know what posture the EU will take as we go forward.

"They’ve [EU] made some statements in regard to budget liabilities, but this is to reflect the EU starting point, it’s not to reflect ours."