IMF says no-deal Brexit will damage UK economy

Leaving the European Union without a Brexit deal could have “dire consequences” for the British economy, the International Monetary Fund has warned.

The fund’s boss Christine Lagarde said there would be costs to the UK whatever the outcome, describing it as a daunting challenge.

The Chancellor Philip Hammond said it was evidence that no deal would put jobs and prosperity at risk, although Number 10 didn’t rush to his support, insisting the Prime Minister believed “our best days are ahead of us”.