Brexit is casting a "cloud of uncertainty" over the British economy, Chancellor Philip Hammond admitted, after MPs rejected Theresa May's deal and the Budget watchdog slashed growth forecasts. 

The British Finance Minister said the Office for Budget Responsibility has forecast growth of 1.2% this year –  a downgrade from the 1.6% forecast at the Budget in 2018.

Delivering his Spring Statement, Mr Hammond said: "Last night's vote leaves a cloud of uncertainty hanging over our economy. And our most urgent task in this House is to lift that uncertainty."

But he insisted the economy remained "remarkably robust". 

The OBR forecast growth of 1.2% this year, 1.4% next year and 1.6% in the following three years.

"Cumulative growth over the five years is now slightly higher than the Budget forecast," Mr Hammond said.