Chancellor Philip Hammond has signalled he would be prepared to vote against a no-deal Brexit in Parliament, claiming it could cost the UK up to £90bn.

Leaving the EU without a legal agreement would be the “wrong” policy and cause a huge “hit” to the public finances, he told MPs.

He said it was “highly unlikely” he would still be in his job after Theresa May stands down next month.

But he said it would be up to MPs to ensure no-deal “doesn’t happen”.

Shadow chancellor John McDonnell asked Mr Hammond at Treasury questions if he would join Labour in voting against no deal and opposing any attempt by a new prime minister to stop Parliament sitting in order to let a no-deal Brexit go ahead.

Meanwhile, the United Kingdom Warehousing Association has told BBC Newsnight that UK warehouses are “full”, raising doubts about the ability of UK firms to stockpile goods ahead of a potential no-deal Brexit on 31 October.

Boris Johnson and Jeremy Hunt, the two men vying to succeed Mrs May, have both said they would be willing to take the UK out of the EU without a deal.

Mr Johnson has refused to rule out shutting down – proroguing – Parliament to push it through.

In reply to Mr McDonnell, the chancellor said: “I do agree with him, it would be wrong for a British government to pursue no deal as a policy and I believe it will be for the House of Commons, of which I will continue proudly to be a member, to ensure that doesn’t happen.”

In the event of no deal, the UK would immediately leave the EU with no agreement about the “divorce” process and leave both the single market and customs union – arrangements designed to help trade between members by eliminating checks and tariffs (taxes on imports). Read more

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