Chancellor says uncertainty is leading to slowdown forecasts

“Business will face uncertainty for the next couple of years as these negotiations go on

Brexit is causing an unprecedented level of uncertainty which is leading to forecasts of an economic slowdown, Chancellor Philip Hammond has said.

Mr Hammond said “there’s no point crying over that fact” and stressed it was the reality of pulling Britain out of the European Union.

The Chancellor also admitted that the Government would have no clarity on what the UK’s future trading arrangements will be when it triggers Article 50 of the EU treaties to begin the Brexit process.

Mr Hammond, widely seen as one of the most cautious ministers in the Cabinet over Brexit, also suggested some aspects of the new trading arrangements could take longer to negotiate than the two-year Article 50 exit process. That could create a need for transitional rules to be put in place for when the UK actually leaves – expected in spring 2019 with Theresa May committed to triggering Article 50 by April.

Mr Hammond told ITV’s Peston On Sunday: “Of course business likes certainty and that’s one of the challenges we face over the coming couple of years – we’re going to have an unprecedented level of uncertainty and that’s one of the factors causing many commentators to predict that there will be a slowing of economic growth.”

The Chancellor added: “We now have a situation where business will face uncertainty for the next couple of years as these negotiations go on.”