Autumn Statement: £14bn shortfall could tie Hammond's hands on infrastructure

The Chancellor Philip Hammond will have £14bn less than expected to provide a stimulus to the economy after the vote to leave the European Union, according to the Institute of Fiscal Studies.

The IFS analysed the latest details of the public sector finances for the first half of 2016/17 and concluded that disappointing tax receipts and higher-than-expected borrowing means that for the entire year receipts could undershoot by £14bn, although added that things might improve before April - but likely still leave Hammond with an £8bn shortfall. 

The Guardian, commenting on the figures, said that even this smaller shortfall "could act as a brake on plans to support a wide range of infrastructure projects". Hammond has talked about an injection of "targeted, high-value investment in our economic infrastructure" will come in next month's Spending Review after abandoning his predecessor's target for a surplus in the public finances by 2019.