With just 12 weeks to go before the British government abides by its self-imposed timeline and trigger the Article 50 divorce clause in order to get out of the European Union, the United Kingdom’s chancellor exchequer Phillip Hammond shed some light on how the kingdom might go forward with and after the negotiations. Mr. Hammond warned on Sunday, speaking to a German newspaper that if the United Kingdom is not granted good access to the single market, the country might fight back by lowering taxes, though it won’t adopt a Singapore Style tax regime. He added that he hopes that even after exit, the UK could remain in the mainstream of economic and social thinking but if not the Britons are not going to lie down and say that it’s too bad that they have been wounded.

The biggest risk for the Britain is the tax-free access to the EU single market, which might get snatched by the leaders of the European Union if the United Kingdom imposes tougher immigration rules for the EU citizens. British Prime Minister Theresa May is expected to provide a greater detail of her government’s negotiating strategies and the self-imposed red lines in her speech on Tuesday.

The pound declined below 1.2 handle against the dollar fearing a hard brexit. it is currently trading at 1.2.