Chancellor in last-chance saloon, warn Tories in Brexit funds row
that a planned rise in National Insurance for the self-employed would be ditched because it clashed with a manifesto promise.
The about-turn triggered speculation that Mr Hammond could be forced from his job amid reports No 10 was infuriated by Treasury briefings against them, including those reported by the
Some backbenchers now want Mr Hammond “gone by May after the local elections”.
One Conservative MP said: “He is in last-chance saloon.”
Cabinet ministers also believe they have a better chance of securing extra money during negotiations with the Treasury after the blunders.
“Everyone thinks the Treasury is weak. People are looking at the battles and wondering whether they can push them further than thought,” said one Cabinet source.
Now in a new row, senior figures in departments delivering Brexit have said they want the Chancellor to agree to give them more funds to help deliver Brexit.
A senior figure in the Brexit department said: “We need more officials. The department is growing but we have got a big task starting in just a couple of weeks’ time.
“We certainly need a couple of hundred more. The stuff we are doing is unbelievably technical.”
The sentiments were echoed by a senior trade department figure: “The expectation is that Britain will be delivering a number of free-trade agreements and progress in other trade areas. It will need people and expertise to deliver those. We do need to make sure it is properly financed.
“We don’t want Britain’s trading future, such an important part of this Government, to be impacted because we don’t have the capabilities to deliver.”
Foreign Office sources also questioned whether they should not be protected from the efficiency savings demanded by the Treasury.
“The Foreign Office can’t continue to have cuts to our budget if we want to achieve global Britain,” a government source said.
“We’ve already undergone efficiency savings. Hammond himself asked for increased spending when he was in the Foreign Office.” Over the coming months, ministers are expected to meet the Chancellor and his team as he plans his autumn Budget.
Meanwhile, No 10 moved to end speculation over Mr Hammond’s future, warning that sacking him now could harm the Prime Minister.
“A reshuffle to move the Chancellor this May would be very damaging and look very weird,” revealed an ally of Mrs May.
“Within a year of forming a Government, to have a reshuffle would look like a sign of weakness.”
Senior Eurosceptics have also attempted to quell reports they are critical of the Chancellor by reassuring the Treasury that only a handful of MPs are briefing against him.
In a sign of acceptance that they made mistakes, Treasury officials are understood to have apologised to the Chancellor for not spotting that raising National Insurance clashed with the Tory manifesto.
Asked about the spending row, spokesmen at the departments in question played down suggestions of tensions with the Treasury.
David Gauke, Chief Secretary to the Treasury, said: “We are confident that departments have the resources needed to ensure we get the best deal for Britain as we leave the EU, and have the right skills to make the most of the opportunities that lie ahead.
“Recognising the crucial role the Department for Exiting the European Union will play in our forthcoming negotiations, it has not been commissioned to model savings for the efficiency review.”
He added: “The efficiency review is about departments looking for opportunities to make improvements and deliver the best value for money for taxpayers.”