United Kingdom’s new chancellor of the exchequer, Philip Hammond, who has previously been the foreign Secretary stressed the importance of getting a positive response from the European Union partners over Britain’s negotiating stance. Speaking to the journalists at G20 meeting, Mr. Hammond asserted that the way to reassure businesses and improve the confidence is to get that positive response. He said, “I think what will start to reduce uncertainty is when we will set out more clearly the kind of arrangement we envisage going forward with the EU…………If our EU partners respond to such a vision positively, obviously it will be subject to negotiation, but positively, so that there is a sense later this year that we’re all on the same page where we expect to be going. I think that will send a reassuring signal to the business community and to markets”.

Mr. Hammond played down the data released last week by Markit economics that showed business activity contracted sharply post-referendum as the consequence hit in confidence and once again signaled that the fiscal option is open for the government in the autumn budget statement to be announced in November and the initial response to the drop in confidence lies with the bank.

Mr. Hammond said that positive response important but the UK and the EU still remain at loggerheads over immigration and freedom of movement.