Chancellor Philip Hammond says Theresa May will stay as PM until she has taken Britain out of the EU and predicts soft Brexit deal with Labour within weeks

Theresa May has a ‘good chance’ of striking a soft Brexit deal with Labour in the coming weeks, Philip Hammond said last night.

Speaking in Washington ahead of an IMF meeting, the Chancellor said the Government and the Labour leadership ‘agree on the fundamentals’ of Brexit.

He also said he expected Parliament to vote again on whether to hold a second referendum – but warned that the new Brexit delay would not give time to hold one.

And Mr Hammond, who has long favoured a softer Brexit, urged MPs to back a revised Brexit deal, saying there was ‘a phenomenal amount of investment being held off’ by business.

Controversial Brexit talks continued yesterday, with David Lidington, the de facto deputy prime minister, and Environment Secretary Michael Gove meeting Shadow Chancellor John McDonnell.

More talks are expected next week as the Prime Minister tries to cobble together a deal that can win a Commons majority and get Britain out of the EU.

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