May warned that if MPs did not adopt the deal there could have to be a lengthy delay to Brexit that would see Britain elect members to the European Parliament in elections in May.
Brexit skeptics fear a "no-deal" scenario would instantly leave Britain without a whole host of necessary systems to trade and deal with Europe, resulting in food and medicine shortages, airport chaos, immigration crises, and any other number of headaches.
"Leaving with no deal would mean significant disruption in the short and medium term and a smaller, less prosperous economy in the long term, than if we leave with a deal", Hammond told parliament.
The PM had herself had proposed rejecting no deal, but the complex nature of her motion, which kept no deal on the table in the longer term for negotiating leverage, was rejected.
The EU has done everything it can to help get the withdrawal agreement over the line in British parliament, Michel Barnier, the EU's chief Brexit negotiator, tweeted Tuesday afternoon.
Although the 149 margin was reduced from the record 230-vote defeat of the first vote in January, Mrs May was left far adrift from a majority with just 17 days to go to the scheduled date of Brexit on March 29.
He told BBC Radio 4′s Today programme: "Between those very unpleasant choices, I think no Brexit is the bigger risk".
Supporters say it allows Britain to control immigration and take advantage of global trade opportunities, while keeping close links to the EU. "Now is the time to come together, to back this improved Brexit deal, and to deliver on the instruction of the British people".
As May defended her deal with a hoarse voice at the Parliamentary dispatch box before the vote, she was heckled from the benches by calls of "nothing has changed" - a reference to a comment she herself had made after the disastrous 2017 election, which she had called intending to increase her authority going into Brexit negotiations, but in which her party instead lost its majority.
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Jackson suggested that argument was aimed at winning a pardon from Trump. "He engaged in crime, again and again". That punishment is on top of a roughly four-year sentence he received last week in a separate case in Virginia.
European Union leaders are likely to agree to an extension as long as there is a clear prospect of a deal being reached - or a referendum or general election which could significantly change the British political landscape.
It adds: "we are prepared, why should we give more time, this would create a de facto transition period".
"But extending article 50 without a clear objective is not a solution".
Unveiling details of a tariff plan that would last for up to 12 months in the wake of a no-deal Brexit, the government said 87 per cent of total imports to the United Kingdom by value would be eligible for tariff-free access, up from 80 per cent now.
Leaving the European Union without an agreement, some experts worry, could lead to food shortages and trade-related chaos.
Kent MPs Charlie Elphicke and Craig Mackinlay both voted to keep the no-deal option open, saying that it was to the UK's advantage in its negotiations with the EU.
"I am actually considering never voting again, quite honestly, because I am beginning to feel that there is no point in it", she said.
Responding to Mrs May's comments, Labour leader Jeremy Corbyn said: "Tonight this house has once again definitely ruled out no-deal".