Hello and welcome to you Coffee House Shots, a Spectator's Daily Politics podcast. I'm Isabel

Hardman and this is the Sunday Roundup. With the budget due on Monday, Sophie Ridge was joined by Philip Hammond.

The Chancellor told Ridge that tomorrow's budget would not be the last we'd hear from him if the

Brexit negotiations were to break down. If we were to leave the European Union without any deal,

and I think that's an extremely unlikely situation,

but of course we have to prepare and plan for all eventualities,

as any prudent government would.

If we were to find ourselves in that situation,

then we would need to take a different approach to the future of Britain's economy.

We would need to look at a different strategy and frankly we'd need to have a new budget that set out a different strategy for the future.

So less spending?

The approach that I'm going to be setting out tomorrow is based on the assumption, as is the OBR's report, of a deal being done with the European Union and us continuing to be able to trade on reasonable terms with our closest neighbours in Europe.

However, when speaking to Andrew Marr later, Hammond sought to reassure.

If we leave with no deal, we'll be in a different set of circumstances, and it would require a different approach, a different response.

Would it need an emergency budget next year?

Well, one of the things that I have done, and I said a few weeks ago in Birmingham that I will continue to do is maintain fiscal buffers, a reserve

of borrowing power against my fiscal rules. So that if the economy, as a result of a no-deal

Brexit, or indeed because of something else that we haven't anticipated, need support over the

coming months and years, I have the capacity to provide that support.

So if there was an unexpected turn of events, the right thing to do would be to revisit where we are,

decide how best to respond. That depends on what markets are doing. It depends on the circumstances of the moment.

But the important point

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