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Philip Hammond to warn that no-deal Brexit will drain over £26bn of the UK's economy

Philip Hammond
Philip Hammond

Philip Hammond will say a second referendum could be the way to "break the impasse" with Brexit. The Chancellor will use his annual Mansion House speech on Thursday to warn Tory leadership contenders to "be honest with the public" and admit that Parliament is likely to reject both the Withdrawal Agreement and no deal.

Mr Hammond is expected to say: "If the new Prime Minister cannot end the deadlock in Parliament, then he will have to explore other democratic mechanisms to break the impasse."

A source close to Mr Hammond said this “leaves open” the possibility of both a second referendum and a general election.

However he will also warn that an election "could put Jeremy Corbyn in Downing Street”...

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