British chancellor unveils funds for upgrades

Britain's Chancellor of the Exchequer Philip Hammond delivers his Autumn Statement in the House of Commons, in London November 23, 2016. [Photo/Agencies]

Chancellor of the Exchequer Philip Hammond announced more funds for Britain's infrastructure and measures to reverse lagging productivity in the first official statement of the government's economic priorities since this year's vote to leave the European Union.

Hammond used his Autumn Statement, his first since becoming chancellor in the wake of the Brexit referendum, to reassure domestic and overseas businesses of the continuing strength of the British economy. Its resilience－it was the fastest-growing among major economies in 2016－confounded commentators, at home and abroad, after Britain voted to "chart a new future for our country", Hammond told a packed House of Commons.

But he acknowledged growth was slowing, and laid out plans for 23 billion pounds ($28.5 billion) of growth-creating infrastructure spending, despite rising government debt.

The chancellor had supported remaining in the EU and, since taking his new post, has come under fire for being over-cautious. His critics included colleagues who favor a quick exit that would open the way for bilateral free-trade agreements in which economies such as China are seen as the biggest prize.

Lack of clarity on the government's negotiating strategy with the EU has been blamed for some businesses putting investment plans on hold and Hammond acknowledged in his speech that "business values certainty and stability".

In the mini-budget, Hammond confirmed that corporation tax would continue to fall, to 17 percent by 2020, despite speculation he might have cut even deeper. By offering the lowest company taxes in the industrial world, the government seeks to boost direct investment from overseas.

Hammond pledged additional infrastructure spending, including more than 1 billion pounds on roads. A new fast route between the university towns of Oxford and Cambridge, already nicknamed the "brain-belt expressway", is designed to act as a new tech corridor.

The chancellor said he was also injecting 400 million pounds into venture capital funds to unlock new finance for growing companies.

The writer is a senior media consultant for China Daily UK.