Exclusive: Philip Hammond is deliberately trying to 'frustrate' Brexit, Cabinet colleague says

Philip Hammond on The Andrew Marr Show
The Chancellor hit out at his loose-lipped colleagues, warning they 'shouldn't have' revealed the contents of Cabinet discussions

Philip Hammond is deliberately working to "frustrate" Brexit and treating pro-Leave ministers like "pirates who have taken him prisoner", a Cabinet minister has told The Telegraph, in an extraordinary attack on one of the most senior members of the Government.

Branding the Chancellor and his Treasury "the Establishment", the furious senior minister warned of a deep split over how to leave the European Union, launching all-out war as talks restart in Brussels on Monday.

They also revealed a plot to keep a weakened Theresa May in Number 10 in a bid to prevent an early leadership race, warning of a "critical moment" as David Davis flies out to meet his rival negotiators for discussions to set the terms of engagement.

It came as Mr Hammond hit back angrily after days of damaging accusations were leaked to the media against him, including claims that he made sexist remarks and said public sector workers were "overpaid".

The "tittle-tattle and gossip", discussed in a Cabinet meeting attended by only the most senior members of the Government, are a result of MPs who do not like his views on Brexit and are seeking to damage him, the Chancellor said.

But a senior Cabinet minister told The Telegraph: "What's really going on is that the Establishment, the Treasury, is trying to ---- it up. They want to frustrate Brexit.

"This is a critical moment. That's why we have to keep Theresa there. Otherwise the whole thing will fall apart."  

Mr Hammond views Brexit-supporters as "a bunch of smarmy pirates" who have "taken the Establishment prisoner", the source said, adding that Mr Hammond is now "trying to break out" and get his own way.

The unprecedented remarks, made after the Chancellor and a number of his Cabinet colleagues had a damaging row over public sector pay, highlight growing tensions over Brexit as ministers fight with each other behind the scenes over what leaving the EU should entail.

Frustration with Theresa May's leadership and plots to oust her and install a new Prime Minister are also rumoured to be behind the leaks, with teams of MPs choosing their candidate and running smear campaigns against rivals.

theresa may
Theresa May could face a leadership challenge before the end of the year Credit: EPA

Last week MPs backing David Davis and Boris Johnson clashed at a party in London, reportedly claiming each would kick the other "in the b------s" if the briefings did not stop, according to The Sunday Times.

Mr Hammond, a Remain supporter, has been outspoken in his desire to see a softer Brexit with a longer transitional period in order to provide certainty to businesses.

He confronted the claims on Sunday, telling the BBC's Andrew Marr: "Some of the noise is generated by people who are not happy with the agenda that I have, over the last few weeks, tried to advance of ensuring that we achieve a Brexit which is focused on protecting our economy, protecting our jobs and making sure that we can continue having rising living standards in the future."

Denying reports that he said driving a train is so easy even a woman could do it, the Chancellor hit out at his loose-lipped colleagues, warning they "shouldn't have" revealed the contents of Cabinet discussions.

David Davis
David Davis is a leading contender to succeed Theresa May Credit: BBC

Mr Hammond repeatedly refused to deny he had told the Cabinet that public sector workers were "overpaid" but confirmed his view that public sector pay and pension packages are "about 10 per cent ahead" of the private sector. 

He directly contradicted Liam Fox and others including Boris Johnson, warning that the UK will need a transitional period of "years, not months”.

However the Cabinet source rubbished claims that Britain would have a prolonged gap in between membership and independence, adding: "This talk of transitions lasting years is also nonsense. At most a year. There's nothing to transit from because of the repeal bill."

A spokesman for the Treasury said: “The Chancellor has repeatedly made clear that we will be leaving the EU in 2019. What matters is that we do so in a way that protects jobs and the UK economy."

 

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