BIRMINGHAM, England Oct 3 The British
government must keep a lid on day-to-day spending but there is a
case for targeted, high-value infrastructure investment
following June's vote to leave the European Union, finance
minister Philip Hammond said on Monday.
Hammond is due to tell the ruling Conservative Party's
annual conference in Birmingham later that while budgetary
discipline remains crucial for the country, there is also a need
to invest in building a fairer economy.
"There is a distinction in my mind between investing in the
things that will make Britain's economy more efficient in the
future, make transport systems work better, communications
systems work better and simply spending more on our day-to-day
process of government," he told BBC Radio.
"We need to keep the lid on day-to-day spending, we need to
make government more streamlined and efficient but I do think
there is a case that we should look at very carefully for
targeted, high-value investment in our economic infrastructure."
Hammond said there was anecdotal evidence that businesses
were postponing investment decisions due to uncertainty
following the Brexit vote, and that if the government was not
ready to intervene it would impact jobs and growth.
(Reporting by William James, writing by Kylie MacLellan;
editing by Kate Holton)