Speaking at the Tory conference in Birmingham, Philip Hammond has backed Theresa May’s Chequers plan for a comprehensive exit deal from the EU. Hammond said Europe would remain Britain’s largest trading partner and there was a need for friction-free access to the EU to continue. With only four weeks to go before the autumn budget, Hammond hinted he would take a cautious approach due to the possibility of Britain crashing out without a deal. But he said he was confident a deal would be agreed and predicted this would lead to stronger growth and a ‘deal dividend’.

Philip Hammond vows to stick with austerity in conference speech