By David Milliken LONDON (Reuters) - Britain could borrow nearly 65 billion pounds more than planned in the next couple of years as new Chancellor Philip Hammond seeks to 'reset' government budget policy to ease the shock of last month's vote to leave the European Union. Ratings agencies and economists widely expect borrowing to rise materially next year for the first time since 2010, as Hammond has to call time - temporarily - on the austerity which dominated his predecessor George Osborne's six years in office. After taking office two weeks ago, Hammond said the darker post-Brexit outlook meant policies the Conservative government had pursued since 2010 needed to change - and economists are now starting to put numbers on what this might mean.
By Simon Webb and Manuel Mogato VIENTIANE (Reuters) - U.S. Secretary of State John Kerry said on Tuesday he supported the resumption of bilateral talks between China and the Philippines over the South China Sea, following a ruling against Beijing over the dispute earlier this month. China did not participate in and has refused to accept the July 12 ruling by the U.N.-backed Permanent Court of Arbitration, in which U.S. ally Manila won an emphatic legal victory. China's Foreign Minister Wang Yi had asked Kerry to lend his support for talks to restart between Manila and Beijing in a meeting between the two in the Laos capital of Vientiane on Monday.