Philip Hammond must be bolder, business leaders say

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And the wealth that a strong market economy creates which, in the end, pays for our public services.

In a speech to the ruling Conservative Party that contained only two new policy announcements, Hammond also said that the government's immediate task was to deal with the uncertainty for citizens and businesses resulting from Brexit.

Chancellor Philip Hammond will defend the Conservative Party's economic record, promising to ensure young people are better off than their parents and promising the next generation: "We will not let you down".

With most polls putting the Tories and Labour neck and neck, Mrs May said a vote for Jeremy Corbyn as prime minister was too risky.

"It's the profits from such businesses that underpin our savings and our pensions".

Business groups welcomed Hammond's defence of free markets, but said the government needed to do much more.

Hammond also hinted there may be some room for help to business in the November budget: "What I've said in previous fiscal events is we have the flexibility to respond to support the economy through what is a very hard period as we negotiate our exit from the European Union". "Removing the uncertainty is, I think, the best incentive we can provide to business".

"The UK is facing a generation-defining challenge".

Ms Davidson said that young people are being prevented from getting on to the property ladder because of spiraling prices.

"We must never deny or dismiss the underlying concerns that the election articulated: we must listen to them and we must respond", Hammond said, adding that the government should offer "pragmatic solutions" to improve ordinary people's lives.

The chancellor told British Chambers of Commerce Director-General Adam Marshall that while he understood businesses' need for clarity over Brexit, they should in turn do their bit to help him show that's precisely what is holding investment back.

Last month rating agency Moody's downgraded Britain's credit rating, saying government plans to reduce its debt load had been knocked off course and that Brexit would harm the economy.

Meanwhile, Labor's shadow chancellor John McDonnell, who was fiercely attacked in Hammond's speech, was equally scathing about his opposite number.

He urged Conservative activists to take on the argument voiced at Labour's conference in Brighton last week that the capitalist economic model which has held sway since the time of Margaret Thatcher had failed.

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