Philip Hammond blasts ‘populism’ as he fires protectionism broadside at Donald Trump before his inauguration

PHILIP Hammond has declared populism a “fool’s paradise” in a thinly veiled attack on Donald Trump on the eve of his inauguration.

And he argued that Brexit was not a “rejection of capitalism” in a powerful defence of his right-wing economic values.

The Chancellor gave a coded warning to the next President of the US not to put up trade barriers during his appearance in Davos, Switzerland.

Mr Hammond told the elite World Economic Forum: “Politicians who take the populist route will find it a very short road.”

He added: “There is no sustainable future for a developed economy in protectionism, subsidy, and high debt.”

Distancing himself from Cabinet colleagues who have avoided criticising Mr Trump since his shock victory last November, Mr Hammond also cautioned against reading too much into the motives of Brexit voters.

And he made clear that Britain would not follow a similar path set out by the controversial real estate tycoon who will become America’s 45th President today.

“So whether it’s on restoring the public finances to health, getting the right Brexit deal for Britain or tackling the long-term productivity challenge facing our economy, this government is providing the responsible economic leadership that our country needs,” he said.

Instead of telling voters what they want to hear, Mr Hammond warned we must “face up to the fact that we have some hard graft ahead.”

“Populism is a fool’s paradise. I hope I have already demonstrated that I welcome suggestions from business and will act on them where I can.”

And in contrast to the Theresa May — who sees Britain’s Brexit vote as a chance to realign British society — Mr Hammond said “we should be cautious about attributing motive to votes in a referendum, as opposed to an election.”

“I do not doubt that a section of the population is disillusioned by the obsolescence of their skills and the stagnant real wages that implies, and happy to kick the political establishment when given an opportunity to do so.

“And we, as politicians, need to hear that message and react to it.

“But it’s a big step to say the UK electorate as a whole is fundamentally rejecting capitalism or globalisation. It isn’t.”

He added: ““Some of them were simply expressing a view on the European Union. And, of course, on immigration.”