The Chancellor of the Exchequer says the government will come up with an entire new budget in the case that Britain leaves the EU without a deal ahead of his budget announcement tomorrow.
ADVERTISEMENTBritish Chancellor of the Exchequer Philip Hammond has said he is setting aside "fiscal reserves" to support the UK economy in case of a "no deal" Brexit.
The Finance Minister, who will announce an annual budget plan on Monday, said on the BBC's Andrew Marr show, that the government set a new Budget in the event that Britain leaves the EU without a deal.
"If we leave with no deal we'll be in a different set of circumstances and it would require a different approach, a different response," he told BBC's Andrew Marr Show on Sunday.
"Getting at a deal that allows us to continue trading with our European neighbours with low friction at the borders and low friction behind the borders will minimize any negative effect on the UK."
When Marr pushed him for an answer over whether there will be a negative effect on the UK or not, Hammond said: "It will minimize any negative effect. Now whether there is an overall, a negative effect or a positive effect, I can't say, that'll be for the modelling in due course to show."
Britain has cut it's budget deficit sharply since the financial crisis a decade ago, but it remains in a high level of debt.
With most economists saying Britain would suffer an economic shock if it leaves the EU with no deal, Hammond will hope the mounting uncertainty over Brexit is cleared up before the official leave date in five months time.