Hammond Warns of Brexit Uncertainty's Impact

Chancellor Philip Hammond told BBC that firms are postponing their investments in the UK due to the uncertainty regarding Brexit.

Hammond's comments came as a Confederation of British Industry (CBI) survey indicated that 42 percent of UK firms believe Brexit has affected their investment plans, prompting the business group to call on the government to swiftly secure a future EU trade deal.

He said that businesses are holding off from putting more money in the country until they see more clarity regarding the future relationship of the UK with the Europe will look like.

He said that government ministers were becoming increasingly resolved that there is a need for a transitional deal in order to avoid shaking up business conditions too much as the UK withdraws from the EU.

He noted that five weeks ago the concept of a transition period was relatively new, but not the majority of the cabinet now sees the need for some kind of transition period.

The second round of Brexit talks will occur on Monday in Brussels.

Prime News are provided by InstaForex