LONDON - The British government appears to be hardening its stance on trade negotiations with the European Union ahead of Brexit.
A senior minister has suggested the United Kingdom (UK) could become a tax haven in order to remain competitive if it's locked out of the single market in Europe.
Opponents claim the comments mean Britain is heading for a “bargain-basement economy”.
British Prime Minister Theresa May is due to lay out her Brexit strategy on Tuesday.
However, ahead of that speech, Chancellor Philip Hammond says if the UK is locked out of the European single market following Brexit, the government wouldn’t just accept it lying down.
Hammond has suggested the UK could fight back by lowering corporation tax to attract businesses out of Europe and could become a tax haven.
Critics argue this would lead to a trade war with Europe which will put jobs at risk.