Brexit - as it happened: Philip Hammond challenges Brussels over City deal as EU warns against 'pick and mix' approach

Culture Secretary Matt Hancock has ruled out reversing the decision to scrap the second part of the Leveson Inquiry following allegations of blagging at the Sunday Times.

Mr Hancock, answering an urgent question from shadow culture secretary Tom Watson, said: "The Leveson Inquiry not only had terms of reference which covered this type of allegation but indeed this person was raised at the Leveson Inquiry."

He said it was a "matter for the police to follow up any evidence of criminal wrongdoing" and said Mr Watson had asked: "Should we therefore bring in an inquiry which is backward looking and bring in rules which will help to undermine further the free press that we need...

"The answer to those questions last week was both clearly no, and the answer with this new evidence of activity that took place up to 2010, it appears, and therefore up to seven years ago, is not a reason to reopen decisions that were taken exactly on the basis that the world had changed and if anything this evidence demonstrates further just how much things have changed."

Mr Watson said the world had not changed and accused Mr Hancock of uttering the "one rogue blagger defence".

"The Secretary of State is capitulating to the press barons who want to use their raw power to close down a national public inquiry," he told MPs.

"So I would like to ask him, in light of these new allegations, will he reconsider his decision on the public inquiry into illegality in the press?

"If not, then how will he assure this House and the public that these new allegations of criminal behaviour by the Sunday Times will be fully investigated?"

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A group of high-profile academics, politicians and public figures have called for a statue to be erected to early feminist Mary Wollstonecraft.

Jeremy Corbyn and Tom Watson led calls to smash the "bronze ceiling" to celebrate her legacy, after she called for gender equality more than 250 years ago, The Guardian reports.

Chancellor Philip Hammond is due to make a speech on Brexit in the City shortly. It comes after a number of senior minister delivered 'Road to Brexit' speeches, including Foreign Secretary Boris Johnson, Liam Fox, the International Trade Secretary, and the Prime Minister.

Philip Hammond is now speaking.

He says financial services is an area where the UK can "collaborate closely" with the EU and "challenges assertions that financial services cannot be part of a free trade agreement with the EU".

The UK's financial services hub is a European asset as well as a British one, Hammond says.

Hammond says the City will not forget the lessons of the financial crisis, and the UK has gone 'higher and faster' on regulation to protect UK taxpayers.

The real beneficiaries of fragmentation of the City would be New York and Hong Kong, rather than Frankfurt or Paris, he says.

Every trade deal the EU has ever done is unique, he says. Every free trade agreement has different market access, he says, addressing the Brexit "sceptics" who think financial services cannot be a part of a trade deal.

Hammond says any deal without it will not be a fair or balanced deal - and it is in our mutual interests to do so.

Hammond says: 'Let us not now propose new barriers where there need to be none'.

He says the UK must deliver the same outcomes, even if the rule systems are different. The UK cannot be a 'rule taker', it has invested heavily in the EU rule book.

UK cannot accept all changes, but must be able to get to the same outcome by different means, Hammond says.

Hammond says the UK 'accepts there will be consequences' for leaving the EU. 'Trade offs are to be accepted and there will be future change', he adds.

The Chancellor is now taking questions from the audience.

The first question focuses on Donald Tusk's speech and his claims that the UK cannot 'cherry pick' its terms.

Hammond says the 'EU is a very skilled negotiator' and it is to be expected that they will take a tough line with the UK.

Asked whether City firms might move out of London, Hammond said the implementation period will be key.

The livefeed has cut away from the Chancellor's Q&A session, so we will catch up on the latest shortly.

In the meantime, Andrew Grice has written an interesting piece on how Philip Hammond can take on Labour with a wealth tax.

Read his column here: