UK slowdown will give chancellor little scope for tax cuts, says PwC

Report predicts Philip Hammond will be prudent in next week's autumn statement and forecasts slowing GDP growth

A slowdown in the UK economy will hit tax receipts and leave the chancellor with little wriggle room for giveaways at next week's autumn statement, a new report warns.

Publishing new forecasts for GDP growth to slow next year as the Brexit vote bites, the consultancy firm PwC said Philip Hammond could afford some spending on big projects such as housing and roads if he changed the government's fiscal rules. But he would not have the money for large net tax cuts and would probably keep a tight rein on spending by central and local government.

Related: 25bn hole will limit Philip Hammond's options in autumn statement, says IFS