Chancellor Philip Hammond believes the UK's negotiating position on Brexit and that of the European Union would become clear "later this year". Speaking on Sunday (24 July) at the conclusion of the G20 finance ministers and central bank officials' summit in Chengdu, China, Hammond said: "What will start to reduce uncertainty is when we are able to set out more clearly the kind of arrangement we envisage going forward with the EU.

"If our EU partners respond to such a vision positively – obviously it will be subject to negotiation – so that there is a sense perhaps later this year that we are all on the same page in terms of where we expect to be going."

Hammond said should that happen, it would send a "reassuring signal" to the business community and to global markets.

The chancellor also described talks with his global counterparts as constructive, in the face of pressure from France and Italy to commence Brexit talks sooner rather than delay until the end of the year.

However, the US and Germany have called for patience on Brexit talks, insisting that it was more important to get the tone and slant of the negotiations right rather than a timetable.

Earlier, G20 finance ministers reaffirmed their commitment to boosting growth and pledged to mitigate the macroeconomic shock of the UK's decision to leave the EU following a referendum on 23 June.