The Guardian reports Theresa May will aim to strike a defiant tone in her upcoming Brexit speech on the risks to the rest of the EU of giving Britain a raw deal, echoing the combative approach taken by the chancellor.

In a speech by the prime minister on Tuesday that will be watched closely in EU capitals, Downing Street is keen to impress that there are potentially lucrative economic opportunities elsewhere, weeks before the UK is expected to trigger article 50.

Philip Hammond, in an interview with German newspaper Welt am Sonntag, warned that Britain would “do whatever we have to do” to regain competitiveness and appeared to accept that the UK was prepared to become a tax haven if necessary.

The chancellor was responding to a suggestion that “the impression on the European continent is that your government sees the future business model of the UK as being the tax haven of Europe”.

Hammond said “most of us who had voted remain would like the UK to remain a recognisably European-style economy, with European-style taxation systems, European-style regulation systems etc. I personally hope we will be able to remain in the mainstream of European economic and social thinking. But if we are forced to be something different, then we will have to become something different”.