Philip Hammond has told the City of London to adapt to stay relevant as the UK prepares to leave the European Union. The chancellor of the exchequer added that the government could overhaul financial regulation after Brexit.

In his annual speech at Mansion House tonight, Hammond urged the UK’s financial sector to “evolve” to maintain its status as Europe’s main financial hub and to “radiate the energy and dynamism which distinguishes a real hub of innovation from its sterile imitators”.