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A no deal Brexit would cause "significant disruption" for the UK in the short term, Chancellor Philip Hammond has said.

He said that it would also see the economy take a "significant hit" in the medium to long-term.

Speaking to BBC Radio 4's Today programme the chancellor refused to rule out resigning if the UK left the EU on 29 March with no deal.

He added that the impact of a no deal is "not what people voted for".

Theresa May took the deal she negotiated with the EU to Parliament last week, but saw it voted down by an historic margin - 432 votes to 202.

MPs will vote on it again on Tuesday and are proposing a range of options, including delaying Brexit until the end of the year if Parliament can't agree on a deal by 26 February.

The prime minister is also hoping to tweak her withdrawal agreement to persuade opponents of it that the UK will not end up tied to the EU indefinitely, so that the UK can still leave in an orderly fashion on 29 March and begin negotiating a comprehensive free trade deal.

Mr Hammond said leaving with a deal was the "only credible and sustainable way" forward, and he believed it was his job as chancellor to "drive us towards a compromise deal".

Speaking from the World Economic Forum in Davos, Mr Hammond said: "What people were told in the referendum campaign... [was] that we would be able to get a deal with the European Union that would protect jobs and our prosperity, and that our exit could be smooth and orderly to a new relationship with the European Union.

"But it is absolutely clear that if we don't get a deal, that is not the way it will work.

"There will be very significant disruption in the short term and a very significant hit to our economy in the medium to long term."

The chancellor said the government needed to "respect the decision of the referendum".

But, he said they should "do it in a way that gives [people] the future prosperity they were promised", adding: "People did not vote to be worse off, they voted to be better off".