UK's Chancellor admits investment in Britain hit by Brexit

UK's Chancellor admits investment in Britain hit by Brexit

It follows earlier accounts of the meeting which had already embroiled the Chancellor in a sexism row for reportedly saying that trains are now so easy to drive that "even a woman" can do it - another claim which Hammond denied.

But asked whether he could confirm that the negative briefings were originating from Ms May's Cabinet, the spokesperson said: "I'm not going to get into speculation of who said what where and when".

In an extraordinary intervention, the PM's spokesman said today that May would urge her Cabinet to stop leaking to the press and concentrate on "delivering for the British people instead". He said he was being attacked because of his views on Brexit.

Ministers had been discussing the cap on public sector pay increases.

As tensions at the top of the Government spilled out into the open, Mr Hammond warned fellow ministers to focus on "the job in hand" rather than leak details of confidential discussions.

Meanwhile, the Treasury confirmed that Hammond said public sector workers receive a "10% premium" in income over private sector workers, but denied his use of the word "overpaid".

He made the comments amid the news that Chancellor Philip Hammond has come under fire after it was claimed that the he told Cabinet colleagues that public sector workers are "overpaid", after refusing to rethink the controversial 1% cap on wages for public sector workers.

Former Tory leader Iain Duncan Smith told Cabinet members engaged in such behavior to "just for once shut up for God's sake" as there is "no mood" among backbench Tories for a leadership contest. I think the public expect us to be disciplined and effective and the only people smiling at this are in Brussels and Paris'. "It has a timetable to it and you can't afford for that timetable to be broken into by a Conservative leadership election, so we have to get through that first and foremost".

He said: "Some of the noise is generated by people who are not happy with the agenda which I, over the last few weeks, have 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 have continued rising living standards in the future".

"I read some of the stuff in the papers at the weekend and it bore no relation to the meetings I was in last week", Grayling told the BBC.

A report from The Sunday Times quoted a cabinet source as saying: 'Philip used a fairly inflammatory phrase.

"It is absolutely clear that businesses, where they have discretion over investment, where they can hold off, are doing so and you can understand why", he said.

A post-election poll by the TUC showed that 76 per cent of voters - including 68 per cent of Conservative voters - want to give public-sector workers a pay rise.