The Chancellor, who was answering questions in the House of Commons, insisted the decision was "very much in the national interest" after an opposition MP suggested it was merely arranged to settle internal Conservatives issues.
The Prime Minister used her surprise announcement on Tuesday to confirm she will hold a vote in the Commons on Wednesday to seek permission to hold a snap election on June 8.
Toby Perkins challenged the Chancellor over the election announcement, demanding an answer on whether the Government was ignoring economic "stability" in favour of settling scores amongst its own members' conflicting interests over Britain's EU divorce.
He said: "Mr Speaker, throughout the last seven years, the needs of the British people have had to play second fiddle to the needs of the Conservative party.
Philip Hammond rebuked Labour critics of Theresa May's general election call
"As a result of that, the Chancellor has been forced to disown the commitment of the manifesto, to balance the budget within this Parliament.
"Isn't it the truth that today's announcement about a general election is another example of this Government putting their party's interests ahead of country's interests – at a time when there is a desperate need for stability?"
The Chancellor instantly hit back, insisting his party will continue to refuse to offer a running commentary on Brexit negotiations, however, Mr Hammond calmed the House over any damage potentially caused to the economy by Mrs May's decision.
Mr Hammond rebuked: "The decision the Prime Minister has made today is a decision made very much in the national interest – to strengthen her hand as she goes into the negotiations with the European Union, to provide a clear mandate for the type of Brexit she has set out in the letter she wrote out to president Tusk two-and-a-half weeks ago, and to ensure the UK can negotiate its exit from the European Union – execute that exit and then transition to the new arrangement with a clear run before the next general election."
Addressing the nation, Mrs May said her Cabinet has believed it was the right time for a general election to be called.
She said: “I have just chaired a meeting of the Cabinet, where we agreed that the Government should call a general election, to be held on June 8.
“I want to explain the reasons for that decision, what will happen next and the choice facing the British people when you come to vote in this election.
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Politicians react as Theresa May calls snap general election on June 8 Tue, April 18, 2017
UK Prime Minister Theresa May has announced her intention to hold an early general election on June 8
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Theresa May has called for a snap general election
“Last summer, after the country voted to leave the European Union, Britain needed certainty, stability and strong leadership and since I became Prime Minister The Government has delivered precisely that.
“Despite predictions of immediate financial and economic danger, since the referendum, we have seen consumer confidence remain high, record numbers of jobs and economic growth that has exceeded all expectations.”