British Chancellor gives clues about Britain's Brexit economy

Chancellor of the Exchequer Philip Hammond spoke Sunday of the financial challenges ahead for Britain as it heads towards leaving the European Union.

Hammond delivers his first autumn statement in the House of Commons on Wednesday, essentially a "state of the nation" finance report ahead of next Spring's main spending budget.

In a round of traditional media interviews ahead of his statement, Hammond and his advisers gave hints about what to expect.

Spending 1.6 billion U.S. dollars on road schemes, and scrapping a proposed increase in the duty on auto fuel are both expected to be announced.

The main message from Hammond will be the British economy faces a sharp challenge. Hammond said his Autumn statement will focus on making sure the British economy is "match-fit for the opportunities and the challenges that lie ahead."

In one interview he said Britain had to "maintain our credibility" as it still had a significant deficit, adding: "I want to make sure that the economy is watertight. That we have enough headroom to deal with any unexpected challenges over the next couple of years and most importantly, that we're ready to seize the opportunities of leaving the European Union."

He also said he wanted to support people who work hard and "by and large do not feel that they are sharing in the prosperity that economic growth is bringing to the country".

Political commentators are waiting to hear how Hammond will respond to reports that British economy is facing a projected 100 billion pound (123.43 billion U.S. dollar) "black hole" in its finances as a result of the June 23 vote to leave the EU.

Labour's Shadow Chancellor John McDonnell in another round of interviews was critical of the way the British economy was being handled by the ruling Conservatives.

McDonnell said the Conservatives' fiscal plan, after six years in charge at 10 Downing Street, had failed, adding Britain has been behind on fiscal credibility ever since the financial crash.

McDonnell said Labour would spend 617 billion U.S. dollars over a 10-year period, half spent directly on infrastructure projects, including roads and rail, and the remaining used to create an "investment bank". He has also called on Hammond to scrap welfare reforms that are hitting many people, especially the disabled.

Meanwhile 60 Conservative Members of Parliament including seven ex-Cabinet ministers Sunday called on Prime Minister Theresa May to pull Britain out of the single market, rather than see a watered down Brexit deal. The politicians made their demand in a report in the Telegraph newspaper.

So far May has refused to show her hand, insisting that Britain will aim for the best deal possible for a trading deal outside of the EU.

Even more intensive sabre-rattling is expected over the coming weeks and months over what kind of Brexit Britain and Europe will agree.

The Sunday Time reported Sunday that former Labour Prime Minister Tony Blair is planning a return to politics. The newspaper says Blair is positioning himself to play a pivotal role in shaping Britain's Brexit deal by scouting out a power base in Westminster. The former prime minister is setting up an institute close to Whitehall and has held talks with senior ministers and officials as he seeks to re-enter British politics, the report added. Endit