As U.K. Finance Minister Philip Hammond prepares to deliver a key update to the country’s budget, there are expectations that it will not include a mention of the so-called “Brexit bill” that the U.K. will have to pay to exit the European Union (EU), an economist told CNBC Wednesday.
Known in the U.K. as the Autumn Budget, Hammond will outline on Wednesday how and where the U.K. government will be spending in the next year, as well as projecting borrowing and deficit figures over the next years.
One expected expense in the near future is the financial contribution to the EU before the U.K. leaves the bloc. The Brexit bill aims to guarantee that there will be no loopholes in the EU budget once the U.K. – a net contributor – leaves the Union.
But Sam Hill, a senior U.K. economist at RBC Capital Markets told CNBC it was “highly unlikely” that there will be reference to the Brexit bill in the budget on Wednesday. He believes that the Office for Budget Responsibility (OBR), which prepares the economic forecasts that the finance minister uses as basis for his budget plans, will not include any Brexit bill until the negotiations have ended.