The U.K. government could announce as early as Monday extra spending plans — a hope that has raised interest in the government's last draft budget before Brexit kicks in.
Recent data from the Office for National Statistics has shown that in the first six months of the year, public sector borrowing stood at £19.9 billion – which was £10.7 billion lower than the previous fiscal year. This means that the U.K.'s finance chief, Philip Hammond, has more room to announce higher spending without having to raise taxes.
The budget plan, due on Monday, is set to mark what Prime Minister Theresa May described, earlier this month, as the end of austerity. However, analysts have told CNBC that the hype surrounding the next fiscal plan might be an overreaction.
"There's too much excitement, I think," Karen Ward, chief market strategist at J.P. Morgan asset management, told CNBC over the phone this week.
"The health of our finances depends on the Brexit deal," she said, adding that as a result next year's budget plan is likely to be more important, given that it will be clearer by then how the EU and the U.K. will work in the future.
At the moment, Brexit negotiators have not yet reached a deal over how the U.K. will leave the EU in March. This has raised chances that the U.K. will leave the EU abruptly in five months' time and, at the same time, it does not allow the finance minister to have a clear economic picture of 2019 and the following years.