Britain faces tough times over Brexit — Hammond

British Finance Minister, Philip Hammond, has said that the world's fifth-biggest economy faced tough times as it tries to avoid a damaging "cliff-edge" departure from the European Union (EU).

A day after the start of Brexit talks, Mr Hammond sought to soften the more confrontational tone towards the bloc taken by Prime Minister Theresa May — a role he has re-adopted since her election flop earlier this month.

"Our departure from the EU is under way. But ensuring that it happens via a smooth pathway to a deep and special future partnership with our EU neighbours, one that protects jobs, prosperity, and living standards in Britain will require every ounce of skill and diplomacy," he said in a speech.

"...Yesterday was a positive start. It will get tougher. But we are ready for the challenge."

Almost a year to the day since British voters decided to leave the EU, the Brexit strategy debate within the government has been opened up again by May's unexpected failure to win a parliamentary majority in the June 8 ballot.

She had raised concerns among many businesses in Britain by saying that no deal with the EU was better than a bad deal, raising the prospect of an abrupt Brexit.

Mr  Hammond had looked set to lose his job until May's election flop.

He has now re-emerged as big business' leading proponent in the government, a role he reinforced last Tuesday by emphasising the need for "mutually beneficial transitional arrangements to avoid unnecessary disruption and dangerous cliff-edges."

In his speech, Mr Hammond also reiterated he planned to stick to the government's target of turning Britain's budget deficit into a surplus by the mid-2020s, despite pressure from the resurgent opposition Labour Party for more public spending.