Philip Hammond has declared the UK is in a strong position to seize opportunities of Brexit
His confidence came after the Office for National Statistics (ONS) said British gross domestic product (GDP) grew by 0.6 per cent in its initial estimate for the fourth quarter of last year.
The figure makes a mockery of the Project Fear claims made by Remainers during the historic EU referendum when they tried to scare voters into not rejecting Brussels rule.
The ONS findings came amid new evidence of growing optimism in the economy with the YouGov consumer confidence index rising by two points to 110.3, its highest level since September last year.
There was more good news for the economy with both the FTSE 100 and FTSE 250 rising and the pound gaining in value on the euro.
Chancellor Philip Hammond said the fourth-quarter GDP update underscored the resilience of the UK economy since the Brexit vote.
Philip Hammond's statement came after ONS announced Britain's GDP grew by 0.6 per cent
He said: "Every major sector of the economy grew last year, which is further evidence of the fundamental strength and resilience of the UK economy.
Every major sector of the economy grew last year
Chancellor Philip Hammond
"There may be uncertainty ahead as we adjust to a new relationship with Europe, but we are ready to seize the opportunities to create a competitive economy that works for all."
The upward impact on GDP was driven by a 0.8 per cent rise from Britain's powerhouse services sector between October and December, which was bolstered by a 1.7 per cent expansion from the distribution, hotels and restaurant industry.
Retail sales and travel agencies also underpinned services sector growth over the period, the ONS said.
The news makes a mockery of Project Fear's claims about Britain's economy after Brexit
The UK's construction industry expanded marginally by 0.1 per cent for the three months to the end of last year, while agriculture lifted by 0.4 per cent and industrial production was flat.
It means GDP expanded by two per cent more last year than in 2015.
Darren Morgan, head of GDP at the ONS, said data showed the economy ended 2016 with "steady growth" for the third consecutive quarter.
Government Loses Brexit Vote Appeal
Tue, January 24, 2017
Britain's most senior judges ruled that Prime Minister Theresa May does not have the power to trigger the formal process Article 50 for the UK's exit from the European Union without Parliament having a say.
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Issued by the Supreme Court of (top row, from the left) Lord Neuberger, Lord Mance, Lord Kerr, Lord Sumption, (bottom row, from the left) Lady Hale, Lord Clarke, Lord Wilson and Lord Hodge, who agreed with the majority decision that the Government could not trigger Article 50 without Parliamentary approval.
"Strong consumer spending supported the expansion of the dominant services sector and, although manufacturing bounced back from a weak third quarter, both it and construction remained broadly unchanged over the year as a whole."
Commenting on the rise in consumer confidence, Scott Corfe, director at the Centre for Economics and Business Research pointed out that the gloomy Remoaner predictions had been proven wrong.
The FTSE 100 and the FTSE 250 have also been rising
He said: “The UK economy has defied the gloomy predictions of the Treasury since the Brexit vote, and continued positive data are reflected in the latest consumer confidence figures.”
Stephen Harmston, head of YouGov reports, added: “Over the past month or so many economists have started to walk back from some of the gloomier forecasts of what they thought would happen in the wake of a Brexit vote.
“Consumers have noticed and are now assessing their economic situations with their own eyes. While the improvement in confidence is good news for the economy and reflects a resilience, when it comes to the consumer impact of Brexit we are still very much in the early stages. However, at the moment, things look good.”