News / Economy

UK has fiscal capacity to cope with no-deal Brexit: Finance minister

Monday, 01 October 2018 10:33 AM [ Last Update: Monday, 01 October 2018 10:37 AM ]

Britain's Chancellor of the Exchequer Philip Hammond (R) and International Monetary Fund (IMF) managing director Christine Lagarde arrive for a press conference to mark the publication of the 2018 Article IV assessment of the United Kingdom at the Treasury in central London on September 17, 2018. (Photo by AFP)

British Finance Minister Philip Hammond has claimed that his country has the fiscal capacity to cope with the divorce from the European Union without any agreement.

Hammond also said that the doubts about the future had already hit the United Kingdom’s economy but believed the mood in Brussels was to reach a divorce deal with his country.

“The mood is undoubtedly that people want to do a deal with the UK. People want to minimize the disruption of the UK’s departure from the European Union, they want to continue having a relationship with us and smooth trading partnership in the future,” he said in an interview with BBC on Monday.

But he added, “Clearly there has been a hit to the economy through the uncertainty the Brexit process has caused. Many businesses are sitting on their hands frankly waiting to see what the outcome of this negotiation is before confirming their investment plans.”

“I believe when the prime minister lands this deal and brings it back there will actually be a boost to the economy,” he said.

In a separate interview with Sky News on Monday, Hammond said, “I’m clear that we will have the fiscal capacity to support the British economy if we were unfortunately to find ourselves in a no-deal situation.”

Britain is set to leave the EU on March 29, 2019, but the terms of the departure still remain unclear.

Prime Minister Theresa May faces increasing pressure both from the opposition and from senior members of her own Conservative Party over her plan.

PressTV-Brexit costing Britain £500mn a week: Report

Brexit is already costing the public purse £500 million a week, new research has found.

Meanwhile, a new research has found that the current cost of Brexit is estimated to be £500 million a week and suggested that it will even further rise.

The analysis by the Center for European Reform also shows that the estimation is a sharp contrast to the £350 million “dividend” pledged by the Leave campaign.

The stark finding comes as the Conservative Party’s annual conference has kicked off in Birmingham, with May’s premiership under severe strain.

“We back business, as the cornerstone of a successful economy, as a force for good in our society, and as an essential expression of our values,” Hammond will say at the Tory conference, according to the text of his speech released to the media.

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.co.uk