In his speech to Mansion House, which had been delayed because of the Grenfell Tower fire, Hammond stuck to his plan for balancing the budget by 2020 through increasing productivity and economic growth – including maintaining strong trade links with the EU.

'We must make anew the case for a market economy and for sound money,’ said Hammond.

‘That means more trade, not less: maintaining our strong trade links with European markets after we leave the EU, as well as seeking out new opportunities for trade and investment with old friends and fast growing emerging economies alike.’

Hammond has also called for a ‘liberalisation of services’. Globalisation in the trade of goods has been a key focus for many economies, but the Chancellor sees the UK’s greatest competitiveness in services, including finance and insurance, technology and communications.

Freeing up these services to be sold globally will include the EU as a key market. ‘And we must employ that logic in our Brexit negotiations, to agree a bold and ambitious free-trade agreement with our EU counterparts that covers both goods and services.’

Domestic weaknesses that have ‘plagued’ the UK include: under-investment, both public and private; inadequate skills; and regional disparities, he added.

He cited three key areas that will go towards addressing these issues. Firstly, the National Productivity Investment Fund will help produce infrastructure. Secondly, the UK Guarantee Scheme will provide credit tools to the construction industry.

He wants to retain access to the European Investment Bank and its offshoot the European Investment Fund at least while the UK remains in the EU. The British Business Bank will be able to increase the amount it invests in venture capital funds to 50%, from 33%. Some of the £400m additional investment announced in the Autumn Statement will also be brought forward.

‘In the long-term, it may be mutually beneficial to maintain a relationship between the UK and the EIB after we leave the EU. And we will explore the options together. But we cannot take chances. So we will be prepared, in case we do not maintain that relationship,’ the Chancellor said.

Migration will be managed, he said, ‘we do not seek to shut it down.’

‘Just as the British people understand the benefits of trade – so, too, they understand how important it is to business to be able to access global talent and to move individuals around their organisations.’

In Bank of England governor Mark Carney’s speech, he called on growth to be kickstarted by the major economies through the promotion of free trade for SMEs, which could include e-commerce platforms. He wants these economies to ‘resist protectionism’, adding to Hammond’s points around freeing up trade in services.

‘In this context, Brexit in general and financial services in particular will be key tests of the world’s capacity to build a path to stronger, more sustainable growth,’ said Carney.

Report by Kevin Reed