The British Chancellor Philip Hammond has said an emergency budget would have to be drawn up if the UK leaves the EU without a deal.

He admitted he would have to "look at a different strategy" if talks with Brussels fail to produce a breakthrough.

He suggested that could mean the British government changing its promise that the end of austerity is "in sight".

Speaking ahead of the his budget speech for 2019 on Monday, Mr Hammond said it was "extremely unlikely" there would be a "no deal" divorce.

He told Sky News: "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."

He later told the BBC's Andrew Marr Show that the end of austerity was conditional on a good deal with Brussels.

"Once we get a good deal with the EU and a smooth exit from the EU we will be able to show the British people that the fruits of their hard work are now at last in sight," he said.

Asked if British Prime Minister Theresa May's Chequers plan for the future relationship would make the UK better off after Brexit, Mr Hammond claimed it would "minimise any negative effect on the economy".

"Whether there is overall a negative effect or a positive effect I can't say - that'll be for the modelling in due course to show," he said.