Theresa May has said a no deal Brexit “wouldn’t be the end of the world” as she played down Chancellor Philip Hammond’s warnings of major economic consequences.
The prime minister said the government was putting in place measures to ensure it can “make a success of no deal”.
But May said she remained confident the UK would be able to strike a “good deal” with the EU.
Speaking to reporters on her trade mission to Africa, May said Hammond was highlighting “work in progress” figures released in January when he published a letter just hours after the government started revealing its no-deal Brexit preparations.
The Chancellor was accused by Tory backbenchers of launching another “project fear” by referring to disputed provisional analysis which claimed GDP could fall and borrowing could be around £80bn a year higher by 2033/34 if Britain resorted to World Trade Organisation (WTO) terms.
Hammond said such an impact on GDP would have “large fiscal consequences”.
He also said this analysis was undergoing a “process of refinement” ahead of a parliamentary vote on any deal.