LONDON (AP) — Britain's Treasury chief says the country would need a new economic strategy if it leaves the European Union without a deal.

Speaking the day before he delivers his budget in the House of Commons, Philip Hammond told Sky News the plan is based on the idea there will be a Brexit deal on Britain's divorce from EU. If there isn't one, he says Britain "would need to look at a different strategy and, frankly, we'd need to have a new budget that set out a different strategy for the future."

Nonetheless, Hammond says he has built up a "reserve of borrowing power" to support the economy if necessary.

He told the BBC that a no-deal departure would force the British economy "to restructure itself over a period of time, and that will be a fairly major transition."