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Reuters
LONDON
Britain's finance minister Philip Hammond said he would keep"reserves in the tank" to see the economy through its looming Brexit challenge, signalling little room for extra spending in this week's budget despite better news on borrowing.
He also said tensions were now easing with other European Union countries after Prime Minister Theresa May shocked her peers by saying no deal was better than a bad deal.
Hammond is due to deliver a budget plan on Wednesday which will be overshadowed by the triggering of the two-year Brexit process which is expected this month.
Britain's economy coped surprisingly well with the initial shock of June's referendum, meaning official growth forecasts for 2017 will probably be raised sharply in the budget.
It also means Hammond will probably announce a modest fall in the amount of money that Britain needs to borrow over the next five years.
But he said on Sunday that he will not be relaxing his strategy of fixing what remains one of the biggest budget deficits among the world's big rich economies.
"If your bank increases your credit card limit, I don't think you feel obliged to go out and spend every last penny of it immediately," Hammond told BBC television.
"I regard my job ... as making sure that our economy is resilient, that we have got reserves in the tank."
In a separate interview with ITV television, he said an improvement in the short-term outlook for borrowing did not mean that things would necessarily be better over the longer term.
Britain's government is under pressure to spend more on its health system and its care for the elderly as well as its often violent prisons and a host of other services.
Hammond acknowledged the strains but he said cash was not the only answer and some authorities were coping better than others. Further ahead, the government needed to rethink how it will fund its plans to cope with an ageing population, he said.
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06/03/2017
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