Furious Brexiteers turn on Chancellor Philip Hammond as he vows to ‘fight and fight’ against No Deal

Tory Eurosceptic MPs have attacked Philip Hammond as the Chancellor prepares to use a speech this evening to urge the next prime minister to consider holding a second Brexit referendum. 

The Chancellor is expected to tell City of London chiefs that Theresa May’s deal remains the best way for the UK to leave the EU in an orderly fashion. 

He will suggest that if that deal cannot get through Parliament then Mrs May’s successor will have to consider ‘other democratic mechanisms’ to resolve the impasse. 

He will also vow to ‘fight and fight’ against No Deal in comments seen as a direct challenge to Boris Johnson, the frontrunner to be the next Tory leader, who has suggested he would take the UK out of the EU on October 31 with or without an agreement.

But the intervention has sparked fury among Tory Brexiteers who are vehemently opposed to holding a second referendum. 

Simon Clarke, a Conservative Eurosceptic MP, said: ‘This is wrong on every level. Wrong because it would shatter faith in politics. 

The Chancellor (pictured leaving Parliament on June 18) is a vocal opponent to a No Deal divorce from the EU and this evening he will reiterate his intention to ‘fight’ such a move

‘Wrong because it would usher in a ruinous Government led by Jeremy Corbyn. 

‘And wrong because it would not bring resolution to the issue – if a second referendum, why not a third? Terrible.’ 

Mr Hammond’s strong opposition to No Deal raises the prospect of him voting with Labour to bring down a government led by Mr Johnson if it sought to pursue a disorderly split from the bloc. 

Calling on the remaining Tory leadership candidates to be ‘honest with the public’ Mr Hammond will urge them to set out an alternative if their plan A is ‘undeliverable’.

He will say: ‘If the new Prime Minister cannot end the deadlock in Parliament, then he will have to explore other democratic mechanisms to break the impasse. 

‘Because if he fails, his job will be on the line – and so, too, will the jobs and prosperity of millions of our fellow citizens.’

Mr Hammond will also warn Mr Johnson (pictured leaving his London home today), and the remaining leadership candidates, that a No Deal Brexit would cause a hit on the public finances of at least £30billion and leave the cupboard bare for spending pledges and tax cuts

The Chancellor will say that the parliamentary arithmetic will not change unless there is an election, Parliament will block No Deal, and will not support the withdrawal deal as it stands.

He will also suggest the EU will not budge on the terms of the current agreement and the Irish backstop will ‘not go away’.

He will also warn Mr Johnson, and the remaining leadership candidates, that a No Deal Brexit would cause a hit on the public finances. 

He will say that leaving the EU without a deal would cost at least £30billion and leave the cupboard bare for spending pledges and tax cuts. 

The Chancellor will also set his face firmly against No Deal, threatening to ‘fight, and fight again’ against it.

He will add: ‘I cannot imagine a Conservative and Unionist-led Government, actively pursuing a No Deal Brexit; willing to risk the Union and our economic prosperity. 

‘And a General Election that could put Jeremy Corbyn in Downing Street, to boot.’ 

Mr Hammond is entering what will almost certainly be his final few weeks as Chancellor. 

All four of the remaining Tory leadership candidates are expected to want to bring in a new occupant of Number 11 Downing Street.