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The chancellor has pledged to spend a £26.6bn Brexit war chest to boost the economy, if MPs vote to leave the European Union with a deal.

Philip Hammond vowed to free up more money to cut taxes and spend on public services in a "deal dividend".

However, he said these spending plans were based on a smooth Brexit.

Mr Hammond used his Spring Statement to warn that a disorderly Brexit would deal a "significant" blow to economic activity in the short term.

He said the decision by MPs to reject Theresa May's Brexit deal for a second time had left a "a cloud of uncertainty hanging over our economy".

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BBC News

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