Having declared the Spring Budget redundant it would have defied logic, not to mention his own temperament, for Philip Hammond to use the last one to launch a display of fiscal pyrotechnics. True to form and extensive pre-event leaks, the Chancellor of the Exchequer did little more than wave a couple of rather lacklustre sparklers.

The Budget document was only 68 pages long - roughly half the length of last year’s. Were the (admittedly rather good) jokes a sign that the Chancellor was at ease with himself, or an attempt to pad out his material? 

That said, the choice to do nothing - or, at least, very little - can itself be a decisive act. Most companies will be glad of it. Some politicians and commentators would like to use the UK’s departure from the European Union, the barely mentioned elephant in the Commons chamber today, as an excuse to be radical, to deregulate the economy and fully embrace free trade. All this can come later.

As the man with his hand on the tiller as the UK begins to navigate Brexit, Hammond appears to be developing into an Oakeshottian Chancellor, adhering to the 20th century philosopher’s observation that all political activity can be likened to sailing on “a boundless and bottomless sea”.

“The enterprise,” as Michael Oakeshott wrote, “is to keep afloat on an even keel.” 

As a former transport secretary, Hammond is probably minded to invest in the nation’s infrastructure, like roads, railway lines, airports and superfast broadband. But the stubborn budget deficit of around £60bn a year and debt of £1.7 trillion keeps a lid on the largesse.

Opening the fiscal floodgates, as Donald Trump has promised to do in the US, could well lead to an increase in inflation. Over there, this would be mitigated by the strong dollar; over here it would be exacerbated by the weak pound. As it is, the Office for Budgetary Responsibility today predicted that inflation will hit 2.4pc this year. 

David Fuller's view

I watched Philip Hammond deliver his budget this morning.  It was predictably conservative, and Theresa May’s inclusions on education were sensible.  The Government is going to be fiscally prudent ahead of the Brexit negotiations for the obvious reason that it cannot know for certain how the EU will respond at this stage. 

Interestingly, it was a very polished and upbeat presentation by Hammond.  His jokes, at the expense of Labour, were surprisingly funny and had Jeremy Corbyn in a high state of dudgeon.  The Prime Minister and Chancellor of the Exchequer need to maintain their current levels of confidence throughout Brexit negotiations with the EU.   

Here is a PDF of Ben Wright's article.