Philip Hammond has put Britain on a fresh collision course with Brussels after he warned the government could reject any Brexit trade deal not including financial services.

Yesterday the chancellor said a trade deal would only happen if it balanced the interests of both the UK and the EU.

“It’s hard to see any deal that did not include financial services can look like a fair and balanced deal,” he said.

Financial services are not only a critical part of the UK economy, providing large tax revenues- banks and other institutions also play a key role ensuring British companies are well capitalised.

The chancellor is right to pursue this line- even though it is likely to be rejected by the EU- as the argument raises the issue of how interconnected the systems are that underpin the capitalist model – and why breaking up is just so hard to do.