Britain’s economy is fifth-largest in world after overtaking India and Brexit deal will boost it ‘by 6.1%’ in 2021

That figure would only have been only 3.3 per cent without a Brexit deal,

Boris Johnson hailed "glad tidings of great joy" in a Christmas message on Thursday night after sealing his £660billion Brexit trade deal.

Four years, five months and 29 days after the British people voted to leave the EU, the PM declared we would finally be able to set our own rules from January 1.

After four years of bitter wrangling between the UK and EU, the trade deal is now set to give the Covid-hit economy a much needed boost.

The pound soared against the dollar after a deal was done as business leaders expressed relief.

After the deal allowing the UK to trade tariff free with the EU, business leaders praised the PM, with Britain's biggest business organisation the CBI hailing his “courage”.

Director general Tony Danker said the trade agreement came as a “huge relief to British business” at a time when firms were struggling with the Covid lockdown.

“The UK has a bright future outside the European Union and with a deal secured we can begin our new chapter on firmer ground,” he said.

Jonathan Geldart of the Institute of Directors added: “For business leaders, this Christmas gift is better late than never.

“A deal can draw a line under what has been a tumultuous few years for companies. It provides a stable basis for the future relationship with our biggest market.”

Richard Torbett, chief executive of the Association of the British Pharmaceutical Industry, and Nathalie Moll, his EU counterpart, said the deal was “in the best interests of patients”.

Richard Buxton, a fund manager at leading City firm Jupiter Asset Management said the agreement was “something UK share investors should celebrate”.

“After a very trying year, it is perhaps the best Christmas present many could have hoped for,” he said.

Negotiators including chief David Frost worked overnight and into the afternoon yesterday to iron out minor details in the 2,000 page legal text after the crucial fishing deadlock was broken.

Mr Johnson last night punched the air as he proudly showed off the 500-page trade deal.

MPs will vote on the deal on December 30 after the Government ordered Parliament to be recalled.