Hammond: UK economy faces two years of Brexit ‘turbulence’

John Hewitt Jones

October 3, 2016


Britain’s economy should expect a “rollercoaster” ride over the coming two years or more as it negotiates an exit deal from the European Union, Chancellor Philip Hammond has warned.

Speaking on BBC1 Breakfast, Mr Hammond said fiscal uncertainty would force him to abandon predecessor George Osborne’s plan to bring the national finances into surplus by the end of the decade.

He confirmed the Autumn Statement in November would set out a new policy framework to fit the negotiations.

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The Chancellor said: “We must expect some turbulence as we go through this negotiating process. There will be a period of a couple of years or perhaps even longer when businesses are uncertain about the final state of our relationship with the European Union.

“During that period, we need to support the economy to make sure that consumer confidence remains, to make sure that business confidence is stable, so that we get the investments that keeps the jobs that keep Britain going.

“That’s my challenge as we go through this period.”

Mr Hammond was speaking a day after Prime Minister Theresa May announced that Article 50 of the EU treaties will be invoked by the end of March 2017, which will compel the EU to negotiate a withdrawal agreement with the UK.