Asked in an interview with BBC television whether he would push ahead with planned cuts of 3 billion pounds ($3.8 billion)for funding of local authorities, Hammond said he would look again at the government's proposals in the light of the general election result when he announces his next budget in November.
Hammond said he already had wriggle room in his existing tax and spending plans and stressed he would not abandon the overall thrust of the ruling Conservative Party's approach to fixing the public finances.
The government is seeking to turn Britain's budget deficit, which was equivalent to 2.5 percent of gross domestic product in the last financial year, into a surplus by the mid 2020s.
"We will look at all these things. Obviously, we are not deaf. We heard a message last week in the general election. We need to look at how we deal with the challenges that we face in the economy," Hammond said.
Opposition Labour party leader Corbyn attacked the government's tight controls on spending ahead of the election which saw Prime Minister Theresa May lose her parliamentary majority.
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