Treasury slammed over ‘power grab’

PHILIP Hammond has been accused of muscling in on Brexit negotiations by demanding the UK retains access to the single market after we leave the EU.

Amid reports of a Cabinet split, the Chancellor is urging colleagues to agree that Britain needs privileged access to the economic area for the benefit of its financial sector and car industry.

Eurosceptic ministers are concerned that he is acting as a ‘blocking mechanism’ to Brexit.

Senior figures such as David Davis and Liam Fox are demanding Britain pulls out of the single market entirely as the only way to claim back full control of our borders.

Last night one prominent Tory Eurosceptic suggested Mr Hammond should resign if he is seeking to water down Brexit.

Downing Street played down any row over the single market. A Number 10 source said: ‘All ministers will have different ideas. But when a decision is made, all will go forward united.’

Senior Conservatives told the Sunday Times the Treasury is barging in on Brexit negotiations, with Mr Hammond resisting plans by other ministers for a complete withdrawal from the single market.

Full access to the single market requires countries signing up to free movement of people which would see continued high levels of immigration – a key issue in the referendum.

Mr Hammond has denied digging his heels in. A Treasury source said he has a ‘flexible position’, adding: ‘There are areas of the economy such as financial services where we may want some access because it is beneficial to us.’

Philip Davies, the Conservative MP for Shipley, said Mr Hammond must ‘accept the will of the public’ and if he ‘cannot accept it he should make way for someone who can.’