UK’s Hammond: Have to be prepared for a no-deal Brexit outcome

The UK Finance Minister Hammond is on the wires now, via Reuters, responding to the questions fired by the Treasury Select Committee (TSC).

Key Points:

IMF growth f/casts reflects how we are being affected by Brexit uncertainty

Have to be prepared for a no-deal outcome even though that is not our preferred position

Will make allocations but won't be spending taxpayers money until the outcome is known

Uncertainty needs to be removed at the earliest

UK has fundamental problem with productivity

UK economy fundamentally robust but has "cloud of uncertainty"

Plenty of anecdotal evidence that businesses and consumers are waiting to see direction of travel of Brexit talks

Ready to spend for no-deal Brexit when necessary

Money spent on customs border with EU would be money that could not be spent on public services