Philip Hammond has suggested that the UK will not cut tax rates below the EU average in order to be competitive with other EU nations. Speaking to French newspaper, Le Monde, when asked whether the UK would consider lowering taxes to remain economically attractive after Brexit, the Chancellor reportedly replied:

“I often hear it said that the UK is considering participating in unfair competition in regulation and tax… That is neither our plan nor our vision for the future… I would expect us to remain a country with a social, economic and cultural model that is recognisably European.”

Mr Hammond had campaigned for the UK to remain in the EU ahead of last year’s referendum and is often seen as a supporter of a somewhat “soft Brexit”, something which has appeared to sometimes put him at odds with his cabinet colleagues who would prefer a cleaner break from the EU.