Philip Hammond said that Britain’s social, economic and cultural model would remain “recognisably European” after it left the EU

Britain will not slash taxes and regulations after Brexit to undercut European rivals, Philip Hammond has said.

In a marked softening of tone, the chancellor said that Britain’s social, economic and cultural model would remain “recognisably European” after it left the EU.

The comments to a French newspaper appear to rule out Britain reinventing itself as a Singapore-style corporate tax haven to attract global businesses.

Such an idea was floated by Mr Hammond in January as a proposed response to other EU nations blocking access to the single market.

Speaking to Le Monde in an interview published over the weekend, Mr Hammond said: “I often hear it said that the UK is considering participating in unfair competition in regulation and tax. That is neither our