Theresa May is heading to Scotland this week as part of her drive to build support for her Brexit deal ahead of the vote on 11 December.
The prime minister will visit Glasgow, visiting factory workers where she will persuade MPs and British citizens alike that her Brexit deal is the best option for the UK.
She will say during her visit to Glasgow: “We will be free to strike our own trade deals around the world, providing even greater opportunity to Scottish exporters.”
Scotland will be a hard sell for the prime minister, where the majority of public voted to remain within the EU.
Earlier this week Scotland’s First Minister Nicola Sturgeon revealed an analysis paper, which highlighted the costs of Brexit. According to the paper, leaving the EU will cost Scotland £9 billion a year by 2030.
The Chancellor told BBC Radio 4’s Today programme that after analysing the effects of the proposed Brexit deal, the UK economy will be “slightly smaller” but the prime minister’s deal is the best option available.
“If you look at this purely from an economic point of view, yes there will be a cost to leaving the European Union because there will be impediments to our trade,” he said.
“The economy will be slightly smaller in the prime minister’s preferred version,” he added.
The vote will take place on 11 December. Many MPs have already shared plans to oppose the deal.
If the deal is rejected, “we will then have to sit down as a cabinet and a government and decide where to go on the basis of the vote, what we’ve seen in the vote and who has voted in which way because clearly we live in a democracy, parliament is sovereign,” said Hammond.
“If parliament makes a decision to reject the prime minister’s proposal, we will have to consider very carefully how to proceed.”
“All of the other options have disadvantages and we have to look not only at the economy but also the need to heal a fractured nation. We will not be successful if we remain fundamentally divided and fractured on this issue.”