Philip Hammond braces Britain for tax rises in next month's Budget

Philip Hammond braces Britain for tax rises in next month's Budget”

"As this model comes under renewed assault, we must not be afraid to defend it".

"(Brexit minister) David Davis is doing a great job in Brussels, but his hand would be strengthened where it is clear that he has a united government behind him and a clear position".

Ruth Davidson, leader of the Tories in Scotland, leads the audience in a sing-a-long, before a member of the audience shouts: "Give her the bumps".

Productivity growth had slowed to a "snail's pace" in the wake of the 2008 financial crisis, leading to wages which were "just too low" in many sectors of the economy, said Mr Hammond. International Trade Secretary Liam Fox was in the crowd when the Foreign Secretary made the comment and appeared to support the position.

After giving up on the tune, Mr Watson apologised to the party leader, who was seated next to him on stage.

Among Conservative MPs who oppose Brexit, there is also little time for manoeuvrings by Johnson, who is known for his gaffes.

He told the Sun: "Am I impatient about it, do I want to get it done as fast as possible?"

"It isn't that people aren't working hard; rather that they are not producing as much through their hard work as their competitors manage to do", he said.

"We have to stop all this".

A "wicked and cynical" Mr Corbyn was offering "superficially simple solutions to complex challenges", but his policies would "inevitably lead us back to where Britain was in the late 1970s" when tax rates reached as high as 98%, the Chancellor warned.

The row is dominating the Conservative Party conference in Manchester, with the British Chamber of Commerce director-general Adam Marshall saying businesses have huge concerns over the "division and disorganisation at the heart of the party of government".

He said there should be urgent agreement on a transition after Britain leaves the European Union in March 2019, and said this should be done by "accelerating" the negotiations with Brussels. "At the moment, that points to a period of around two years and I think that leaves some flexibility but the degree of precision that businesses need to start planning".

Hammond also revealed that he personally thought the transition period should have been "between three and four years", but said "around two years works for everybody".

But there seems little appetite for the idea that he could challenge May to the leadership.

Many people in Manchester are lukewarm about the prime minister, but most agree there is no clear successor.

"There are short-term challenges and the uncertainty created by the Brexit negotiation process is one of them", he said. "Politically as a party they are imploding", he said.

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