Britain, being one of the main contributors to the EU budget, is currently rethinking its relationship with the 28-nation bloc ahead of a referendum on its membership in the European Union, due to take place by the end of 2017.
"Although the referendum is not legally binding it will be politically binding and if there is a referendum decision that Britain should exit then we will serve a notice under Article 50 of the treaty of Rome and begin the process of negotiating exit arrangements – uncharted territory because no country has done that before," Hammond was quoted as saying by The Telegraph newspaper.
London wants the right not to commit itself to the EU pledge of an "ever closer union," curb social benefits for EU migrants, secure greater protections for non-eurozone countries in the bloc, and more powers for the national government.
