Philip Hammond pledges cash to help firms ride Brexit ‘rollercoaster’

PHILIP Hammond has vowed to bail out wobbling businesses hit by a Brexit “rollercoaster” – as well as fight for the “best possible” EU trade deal.

The new Chancellor used his first address to the Tories’ annual conference since entering the Treasury in July to insist employers’ EU exit fears are “understandable”.

And vowing to champion a soft Brexit to protect British jobs, Mr Hammond teed up a Cabinet showdown on the shape of our Brexit deal with its prominent Leavers who want a clean break.

Laying down the gauntlet, Mr Hammond insisted: “No ifs, no buts - we are leaving the European Union.

“But it is equally clear to me that the British people did not vote on June 23rd to become poorer.”

The Chancellor issued a key pledge to “take whatever steps are necessary” to keep the British economy going during the “turbulence” ahead.

He also;

• Offered “support to British businesses as they adjust to life outside the EU”, opening the door to major tax cuts to keep businesses profits up.
• Confirmed predecessor George Osborne’s plan to get rid of the deficit by 2020 had been postponed – easing the pace of spending cuts and tax rises in another boost for the economy. Mr Hammond pledged to spell out a new slower timetable to keep on reducing the deficit during the Autumn Statement mini-Budget in November.
• Agreed to guaranteed to match all EU funding to businesses once we exit.

Aides to the Chancellor also suggested his big bazooka offer may one day mean offering compensation to companies who export to Europe if trade tariffs end up being imposed – as demanded by Japanese car giant Nissan.

In a pointed hint to the Sunderland-based manufacturer that it may get Treasury cash, Mr Hammond’s spokeswoman said Nissan should find his offer “reassuring”.

Mr Hammond’s warning that there is “no room for complacency” and negotiations with the other 27 member states will be “complex” struck a markedly different tone to other Cabinet ministers’ speeches that laid out a more positive Brexit vision.

And it left the clearly angered Tory faithful in the Birmingham conference hall silent for long periods of his speech.

Earlier, Mr Hammond had also warned that there is already “anecdotal evidence that businesses are postponing investment decisions".

He added: "That is still the central prediction of forecasters - overall leaving the EU will still have a negative effect on growth.

"Our job is to mitigate that."

Hours later, International Trade Secretary Liam Fox hit back at Mr Hammond’s soft Brexit bid.

The pro-Brexit campaigner insisted that Britain shouldn’t be “afraid” to take the lead on the world stage, adding: “We are inspired, we are emboldened and we are ready.

“So let’s rise to this challenge, to our golden opportunity, as never before.”

Arch-eurosceptic Tory MP John Redwood saying: "I'm a little bit more optimistic than he is.

“I don't think there is going to be bad turbulence this year or next from Brexit-related activities."

Mr Hammond’s interventions were welcomed by business bosses.