Chancellor Philip Hammond warned not to spread ‘panic’ with ‘gloom and doom’ budget ahead of EU exit talks

PHILIP Hammond has been warned against spreading pre-Brexit “panic” with a heavy-handed mini-Budget.

A fresh Cabinet split has emerged up as the Chancellor prepares a raft of measures to survive the shock waves of quitting the EU.

But angry colleagues fear it will only spread gloom and doom in the run-up to key Brexit talks.

They have told him not to turn next month’s autumn statement into the “revenge Budget” threatened by his predecessor George Osborne.

The revolt against too much stimulus is being led by International Trade Secretary and leading Brexiteer Liam Fox.

He has told pals: “The economy is doing well despite all the talk of catastrophe in the run up to the Referendum.

“Common sense and sanity has prevailed over hyperbole and panic.

"The last thing we need now is an Osborne emergency Budget mark two.”

Remainer Mr Hammond wants to take the brakes off spending on November 23 – possibly by boosting rail and road investment – to protect Britain from any Brexit shock waves.

But it has re-ignited an explosive split at the heart of the government over Britain’s future links with the EU.

Mr Hammond is keen to have continued access to the single market and believes we will have to strike a deal over migration – putting him at odds with pro-Leave colleagues.

Senior Tories claim he has twice come close to quitting after clashes with Theresa May over Brexit and being excluded from key meetings – but he has denied any rift.

The Chancellor has abandoned his predecessor’s promise to balance the books, freeing him to borrow more money for fiscal stimulus.

His statement is expected to include a £3billion housing fund to help smaller house builders.
But Brexiteers are calling for a “steady as she goes” statement.

One said: “If he starts saying it’s all to prevent future disaster when we leave the EU, that will only spread panic.

“He’s been going around talking the economy down for far too long. He needs to keep a steady hand on the tiller.”

• BRIT firms will get access to an export market worth £17trillion when we quit the EU.
  The 14 nations who say they will do business with the UK would double our trade opportunities. But experts say the queue of customers will be even longer once the Brexit process starts.
  The Change Britain study says we will gain by leaving the EU customs union despite job fears.