Downing Street rebukes Philip Hammond over his call for 'very modest' changes after Brexit as anti-EU Tories revolt

No 10 has been forced to rebuke Philip Hammond over his call for only “very modest” changes after Brexit, following a furious backlash from anti-EU Tories.

Downing Street initially refused to criticise the Chancellor’s comments, but eventually did so amid anger among Eurosceptic MPs – one of whom told Mr Hammond to “put a sock in it”.

“While we want a deep and special economic partnership with the EU after we leave, these could not be described as very modest changes,” a source said.

As the fragile Tory truce on Europe threatened to collapse, Health Secretary Jeremy Hunt was sent out to defend Theresa May, saying it was “absolutely wrong” to “use the word timid about this prime minister”.

On Thursday night, Jacob Rees-Mogg put himself at the head of a growing Brexiteer revolt, condemning a withdrawal strategy that was “timid and cowering and terrified of the future”.

Meanwhile, some Tories have suggested a vote of no confidence in Mrs May is getting nearer, as the number of MPs demanding a ballot creeps closer to the 48 required to trigger it.

Speaking in Davos, the Chancellor enraged hard Brexit supporters with his support for only “very modest” changes to the UK’s trading rules with the EU, setting out the risks of trying to break free.

He went out of his way to praise the call by the CBI employers’ organisation for the “closest possible relationship between the EU and the UK post-Brexit” – days after it called for permanent membership of the customs union.

Britain must not agree to anything that “throws away all the benefits we have of the complete alignment of our regulatory systems, the complete integration of our economies”, Mr Hammond said.

Later, Mr Hammond published two tweets insisting, despite his comments, that he was “clear” that Britain was leaving the single market and customs union.

Andrew Percy, a former minister, was among Tories to criticise the Chancellor publicly, saying he should “put a sock in it” and stop “mocking other Cabinet ministers by writing his own Brexit policy”.

Former Scottish Secretary Lord Forsyth said Mr Hammond appeared to be “completely at odds with what the Prime Minister said in her Lancaster House speech” - and that she “needs to get a grip on her Cabinet”.

Speaking on BBC Question Time, the Vote Leave supporter added: “If people [in Cabinet] don’t agree with the policy of the Prime Minister, then they leave and they resign.”

The No 10 reprimand of the Chancellor was the second issued by the Prime Minister in just three days - laying bare her weakness, many Conservatives believe.

On Tuesday, she slapped down Boris Johnson, the Foreign Secretary, in Cabinet over his call for the NHS to receive an extra £5bn a year immediately after Brexit.

However, Mr Hunt told the BBC Radio 4 Today programme: “Anyone who uses the word “timid” about this Prime Minister is absolutely wrong.

“This is the Prime Minister that gave us absolute clarity after the Brexit vote that we were going to get back control of our laws, our borders, our money - the most profound strategic decision any prime minister has to make in the current circumstances.”