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        Hammond will miss key budget targets


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Hammond tried to reassure investors that even if Britain's exit from Europe was about to address Britain's high public debt level, he said he hoped to keep the basic budget deficit below 2% of its economic output in fiscal year 2020/21.
But he also faces pressure to ease pressure on hospitals and other public services, and some welfare reforms have been suspended because of the impact on poorer families.
According to the National Institute of Economic and Social Research, Hammond may have to relax or abandon his goals in his semi-annual budget statement on March 13.
Last October, Hammond softened his plan to cut overall management spending, expressed as a percentage of gross domestic product, because he promised voters that austerity would end soon.
But NIESR says even milder extrusion spending may be difficult to achieve.
Jagjit Chadha, director of NIESR, said: "There is a clear demand for economic and social infrastructure beyond the feasibility of the current fiscal rules."
NIESR economist Amit Kara says Hammond's work will also be made more difficult by official statisticians'decision to reclassify the impact of student loans on public finances.
Hammond has other public finance goals, including steadily reducing the share of public debt in GDP.


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