Hammond: Transition will ease business fears

Philip Hammond has said he is “confident” businesses will be given the Brexit certainty they need – although he sidestepped calls to ensure transition principles are guaranteed by Christmas.

The Chancellor acknowledged that the principles of a transition period are “urgent and pressing” for businesses, also telling MPS the government wants them agreed with the European Union “as soon as possible”.

His comments came after Prime Minister Theresa May told MPS that there could be no transition period after Britain leaves the European Union unless there was agreement on a trade deal.

Mr Hammond said: “As part of such a deal, we will seek an implementation phase that gives British businesses and indeed government agencies proper time to prepare for the new circumstances they will face.”

The Chancellor also told MPS he expects real wage growth to resume in the UK next year, following an inflation “spike” which has been linked to the Brexit vote.