By Elizabeth Piper
LONDON, July 21 (Reuters) - Finance minister Philip Hammondsaid on Sunday he would resign if Boris Johnson became Britain'snew prime minister because he could not support a leader happyto take the country out of the European Union without a deal.
Hammond's decision underlines the strength of feeling inparliament against a no-deal Brexit, which some lawmakers andmany businesses say would be catastrophic for the economy.
A loyal Conservative who has served in a number ofministerial roles, Hammond is an unlikely rebel. He said hisfears over a no deal had forced him to vote against thegovernment for the first time in his 22-year political careerlast week.
Britain's new prime minister is tipped to be former Londonmayor Johnson, who has promised to leave the EU "do or die" byan Oct. 31 deadline. That leaves him facing a tricky Brexitchallenge from the moment he takes office on Wednesday.
Johnson has said he would ramp up preparations for a no dealif he becomes prime minister to try to force the EU'snegotiators to make changes to the deal that Prime MinisterTheresa May sealed with Brussels and UK lawmakers voted down.
But parliamentary opposition to a no deal is growing and theEU is refusing to budge over that Withdrawal Agreement.
"I am sure I am not going to be sacked because I am going toresign before we get to that point," Hammond told the BBC'sAndrew Marr Show, adding he would resign to May before shetenders her own resignation to the Queen on Wednesday.
"Assuming that Boris Johnson becomes prime minister, Iunderstand that his conditions for serving in his governmentwould include accepting a no-deal (EU) exit on the 31st ofOctober. That is not something I could ever sign up to."
Hammond, who according to sources close to Johnson ofteninfuriated the former mayor who felt the finance minister was"talking Britain down", said he did not believe his formercolleague could win a deal with the EU by the deadline.
He instead advised the new prime minister to ask the EU fora little longer if there were signs that the two sides couldagree on a compromise position - something Johnson's rival forthe premiership, Jeremy Hunt, has said he is open to.
If not, Hammond said he would work with other lawmakers tomake sure Britain was not taken out of the EU without a dealagainst parliament's wishes - a pledge welcomed by the Brexitpolicy head of the opposition Labour Party, Keir Starmer.
"Yes, (I will campaign) to stop no deal happening on Oct. 31without the consent of parliament," Hammond said.
"I want to be a loyal supporter of the next Conservativegovernment and if (it).. can deliver a negotiated Brexit dealthat protects our economy then I will strongly support thatgovernment. And I hope I will be able to."(Reporting by Elizabeth Piper; editing by John Stonestreet)