Autumn Budget 2017: Treasury understood not to be planning “radical” Budget

Chancellor Philip Hammond might be coming under pressure to unveil a “radical” – and vote-winning – Budget, but anyone expecting “big, bold” announcements could yet be disappointed.

Hammond, who has in the past said “fiscal” is the best word to describe him, is currently canvassing the opinion of hundreds of MPs and other groups, sifting through thousands of submissions ahead of the big day on 22 November.

Ideas being put forward include wiping off huge chunks of student debt and ploughing taxpayer money into housing, costing billions between them. Other suggestions include tax cuts for the young, a reduction in stamp duty for first time buyers, a freeze on fuel duty and a reversal of the duty on Scotch whisky.

However, City A.M. understands that any suggestion that the Budget will contain any “big offer” are wide of the mark, regardless of the political capital.

“He is a sound-money fiscal Conservative,” a source told City A.M., pointing to Hammond’s recent refusal to allocate funds for a “no deal” scenario as evidence of his “responsible” way with public cash.

“He is keen to hear MPs’ ideas on the Budget and the biggest issues facing the country,” the source added.

“But whatever he decides he has got to find a way to pay for it… he’s going to be sensible with the nation’s finances.”

The Autumn Budget will be unveiled against a backdrop of weakening economic data, including an expected rise in inflation to above three per cent.

It also comes amid growing hostility directed towards Hammond himself, from Cabinet colleagues apparently unhappy over his “Eeyoreish” approach to Brexit and the nation’s finances more generally.

Over the weekend he was forced to apologise after he referred to the EU27 as “the enemy”.

One senior government source told the Sunday Times it was make or break for Hammond.

“Pre-conference there was very much a view that it had to be a safety first Budget. Now the view has galvanised that this Budget has got to be big, it’s got to be powerful, it’s got to be revolutionary,” the source said.

“Saying it’s got to be brave is really understating it. People are very clear that this is basically the last chance.”