No-deal Brexit could be ‘taken off the table’, chancellor Philip Hammond admits to business leaders

'The government is not in control of this,' chancellor admits

Philip Hammond has told business leaders that a no-deal Brexit could be "taken off the table" in a conference call where he raised the possibility of delaying Britain's exit from the EU.

Hours after Theresa May suffered a historic Commons defeat over Brexit deal, Mr Hammond sought to reassure bosses of top firms that a disorderly exit from the bloc would be avoided.

In comments that will enrage Brexiteers, the chancellor raised the prospect that article 50 be revoked and the government was looking at "whether we can somehow take the option of no deal off the table", according to a leaked transcript of the conference call.

He told the 11 business leaders that the EU would not consider extending article 50 "unless or until we have a clear plan to go forward" and the "large majority" in the commons are opposed to a no-deal "in any circumstances".

Mr Hammond also pointed to controversial backbench bid led by Tory MP Nick Boles, which aims to force the government to extend Article 50 if a Brexit deal cannot be reached, according to The Telegraph.

"What this group of backbenchers has been doing is seeking to find a mechanism by which the House of Commons can express that view in a way which is binding and effective," he said.

His comments put him at odds with Brexiteers in the party, who already view the chancellor with suspicion, as they believe he supports a softer exit from the EU.

Asked about the comments, Tory chairman Brandon Lewis failed to deny the conversation had taken place, telling the Today programme: “I don’t quite take that view.

"What I’m saying is parliament has the ability to do a range of things. What I am saying is the best way to avoid no deal is to agree a deal.”

The business leaders sought assurances from Mr Hammond, Brexit secretary Stephen Barclay and business secretary Greg Clark, who were also on the call, that a no-deal could be ruled out.

Doug Gurr, head of Amazon UK, reportedly said ruling out a no deal would give "comfort" to global boards.

But Mr Hammond said it would not be until next week that things became clearer. MPs will vote on an amendment that will "pave the way for the Bill" on Monday, the paper reported.

John Allan, chairman of Tesco and president of the CBI, asked if taking a no-deal Brexit off the table reduced the UK's negotiating power with the EU.

Mr Hammond said removing options had consequences, adding: "The government is not in control of this. I am only telling you what information I have been able to glean.

"My understanding is that because the bill being brought forward will simply and solely rescind the Article 50 notice, the legal opinion that they have is that that will meet the test that the European Court of Justice has laid down for unilateral recision of an article 50 notice.

"It is not within their power to mandate any future course of action, that would be for a government to do."

A Treasury spokesman confirmed the phone call took place shortly after the vote on Tuesday, but would not confirm any details.

It comes as the prime minister appealed to opposition leaders to break the Brexit impasse, after she survived a confidence vote in her government on Wednesday night.

But Ms May faces an uphill struggle to win them over, as Jeremy Corbyn refused to even meet her, while other party leaders demanded scrapping the possibility of no-deal as a condition of progress.