Hammond: Brexit has hit investment in UKpublished at 19:01 Greenwich Mean Time 24 January 2017
Philip Hammond says the vote to leave the EU has "undoubtedly" slowed down business investment decisions in Britain.
The chancellor told MPs that Brexit had created a climate of uncertainty which had had an effect on the British economy.
And he warned the country faced long-term challenges over how to tackle its productivity gap, which meant that a worker in Britain took five days to produce what a German did in four.
He made the comments in the Commons before MPs were asked to approve the updated Charter for Budget Responsibility, which was first unveiled in last year's Autumn Statement.
Quote MessageWe know that business hates uncertainty, and the uncertainty that has been created by the Brexit vote has undoubtedly slowed down business investment decisions. But the problem we are looking at here in terms of productivity is not a short-term issue in response to the Brexit vote; it is a much longer-term challenge in the UK economy."