Phillip Hammond is coming under pressure not to "panic" and offer any kind of stimulus in the autumn statement on November 23rd. According to The Telegraph (HERE) Liam Fox is saying it would be a "huge mistake" if he accepts what Fox claims are nonsensical figures about growth collapsing next year.
The chancellor is in an impossible position. The treasury and the vast majority of economists and commentators expect a serious slowdown next year but colleagues in cabinet and in parliament simply refuse to accept that there is even a remote likelihood of any sort of problem. John Redwood says the forecasts in November are "clearly going to be wrong" before they are even published!
If Hammond acts to stimulate things he will be accused of bringing about a slowdown by panicking people into cutting back on spending and investment. Daniel Hannan was on Radio 4 this morning making the same accusations against Mark Carney.
They are like passengers on The Titanic urging the captain, after the ship has struck the iceberg, to act as if nothing has happened.
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