Theresa May is heading towards a soft Brexit supported by Philip Hammond

Theresa May

Hammond said the party's popularity was based on "preying on people's worries, manipulating their fears, luring them with false promises ..."

Labour's recent conference in Brighton had shown a "resolutely negative agenda of failed ideas dredged up from a bygone era, threatening not only our economic progress but our freedom as well", the Chancellor claimed.

The Conservatives must take on and defeat Labour "dinosaurs" in a great "clash of ideas" over the future of capitalism, Philip Hammond has said, adding that activists must expose Jeremy Corbyn's "back to the future socialist fantasy" which was leading people "down a risky path".

Hammond drew a clear distinction between Britain's economy, which he said would "remain closely linked with the European Union for many good reasons", and its politics, saying the UK's "political future will be our own".

Labour's leaders, he said, "openly proclaim their ambition to demolish our successful modern market economy and replace it with a back-to-the-future socialist fantasy with hundreds of billions of extra debt for the next generation to pay".

The Chancellor will say: "Our economy is not broken: it is fundamentally strong".

Boris Johnson has said the transition period after Brexit must not last longer than two years
Boris Johnson has said the transition period after Brexit must not last longer than two years

"The Chancellor has given a passionate defence of free markets and the importance of business and government working to tackle inequality".

"This uncertainty, we believe, is depressing business investment", she added.

Young people are taking on a disgusting amount of debt, and many don't even know what they are getting from it. Our members, thousands of small businesses across the UK, are united in wanting to see many more young people being trained to higher skill levels.

But with Brexit on the horizon, a slowing economy and the Bank of England hinting that interest rates could rise, May and Hammond have limited room for fiscal maneuver. Divisions over Europe helped sink the Conservative premierships of Thatcher, John Major and David Cameron.

The row is dominating the Conservative Party conference in Manchester, with the British Chamber of Commerce director-general Adam Marshall saying businesses have huge concerns over the "division and disorganisation at the heart of the party of government".

Healey also used the HuffPost piece to reiterate other Labour policies for the private rental sector, including more landlord licensing, unspecified "new minimum standards" and the issuing of three year tenancy terms as standard: these were already contained in Labour June 2017 General Election manifesto.

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