Hammond rejects idea of Emergency Budget

In a later interview with BBC radio, Hammond said the United Kingdom might also consider the pace of its deficit reduction, arguing that the economy was in need of a less aggressive approach to that of his predecessor George Osborne.

"If there's one thing that is damaging our economy right now, it is uncertainty for businesses", he told the BBC.

Hammond was due later on Thursday to meet with Bank of England (BoE) Governor Mark Carney to further assess the UK's economic situation.

Key positions of state were filled on Wednesday night, with Boris Johnson appointed as foreign secretary, Amber Rudd going to the Home Office and leading Brexiters Liam Fox and David Davis responsible for worldwide trade and Brexit negotiations respectively. There will be an Autumn Statement in the normal way and then there will be a Budget in the normal way.

Philip Hammond may have spent the last two years as Britain's foreign secretary, but Theresa May's new Chancellor of the Exchequer is certainly no stranger to the world of finance.

He also said his successor as Foreign Secretary, Boris Johnson, would be "very good in this job".

"I would not be surprised to see us look at regulatory structures", Hammond said.

Five years on he has been welcomed back into the ranks by the new prime minister.

Osborne had aimed to turn Britain's budget deficit - which stands at about 4% of gross domestic product - into a surplus by 2020 although he said recently that he would no longer pursue that target given the expected hit to the economy from the country's decision to leave the EU.

CMC analyst Jasper Lawler said Hammond was a "fiscal hawk" who would be seen positively by investors who would have been concerned by May's plans to reduce austerity and tackle corporate governance rules.

"We have all got different styles and that is why we make a strong team", he said.

Mr Hammond, a Remain campaigner, was this afternoon challenged to defend his "apocalyptic statements" during the referendum debate.

After the 2010 election, they became Downing Street neighbours as Prime Minister and Chancellor, operating as a partnership within the Coalition government.

The comments come ahead of a decision by the central bank's Monetary Policy Committee on whether to stimulate the economy.

Mr Osborne also said during the referendum campaign that Britain would need an emergency Budget in the event of a vote for Brexit.

"We have seen business investment decisions being paused because businesses now want to take stock, want to understand how we will take forward our renegotiation with the European Union".

He is replaced by Hammond, who most recently served as foreign secretary from July 2014 until July 2016 and was secretary of state for defence from 2011 until July 2014.

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