The Government will aim to outline a Brexit blueprint “later this year”, according to the Chancellor, in a move that he said would send a “reassuring signal” to businesses and markets.
Global finance chiefs warned on Sunday that the UK’s decision to leave the EU had raised the risks facing a world already in danger of slipping into a low growth trap.
Speaking after a G20 meeting dominated by the referendum result, Philip Hammond said outlining a path for exit that meant other European leaders were on the “same page” as the UK was a priority for the Government.
Mr Hammond cautioned that the two year negotiating process, which only starts when the UK triggers Article 50, meant that uncertainty could continue for years to come.
Finance ministers from the world’s leading economies said the outcome of the referendum last month had added “to the uncertainty in the global economy”.
“The recovery continues but remains weaker than desirable,” ministers said in a joint communiqué following a two day meeting in Chengdu, China.
Officials said that countries were “well positioned to proactively address the potential economic and financial consequences” of the vote and would use “all policy tools” to support growth.
“In the future, we hope to see the UK as a close partner of the EU,” the communiqué said.
Speaking on the sidelines of the meeting, Mr Hammond said the Government would work to reduce uncertainty by outlining “more clearly the kind of arrangement we envisage going forward with the European Union.”
He signalled that a quick deal depended on the rest of the EU’s engagement with the process, as he warned that “the uncertainty will only end when the deal is done”.
Mark Carney, the Governor of the Bank of England, said markets had so far “weathered” the “spikes in uncertainty and risk aversion” triggered by the Brexit vote and jitters over global growth at the start of this year.
In a letter sent to the G20 in his capacity as the chairman of the Financial Stability Board, Mr Carney said markets had “continued to function effectively” and had “dampened aftershocks from these events rather than amplifying them”.
“This resilience in the face of stress demonstrates the enduring benefits of G20 post-crisis reforms. It also reinforces the importance of finishing the” job of implementing these reforms,” the letter said.
Christine Lagarde, the managing director of the International Monetary Fund said it was important that global leaders took action to “foster confidence and support growth”.
She said: “We met at a time of political uncertainty from the Brexit vote, and continued financial market volatility. Lacklustre growth of the post-crisis era continues, with weak demand in advanced economies and difficult transitions to a self-sustained growth model in many emerging markets.”
The G20 repeated its pledge to avoid competitive currency devaluations. Ministers also said they would resist all protectionism, as fears about the weakness of global trade growth.
“We will carefully calibrate and clearly communicate our macroeconomic and structural policy actions to reduce policy uncertainty, minimise negative spillovers and promote transparency,” the communiqué said.