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UK's Hammond: Brexit uncertainty main reason for weak business investment

FILE PHOTO: Chancellor of the Exchequer Philip Hammond attends the IMF and World Bank's 2019 Annual Spring Meetings, in Washington, April 13, 2019. REUTERS/James Lawler Duggan

LONDON (Reuters) - UK finance minister Philip Hammond on Wednesday said uncertainty over Brexit was the principal reason for weak business investment, but that firms believed delaying the country’s EU exit was better than the potential alternative.

“It’s definitely the case that business investment is significantly below where we would expect it to be at this stage of the cycle ... it’s pretty clear to me that the principal reason is uncertainty created by the continuing process of working out how we are going to exit from the European Union,” he told a parliamentary committee.

Reporting by David Milliken, writing by William James; editing by Guy Faulconbridge