The Chancellor told Cabinet ministers the UK would be unlikely to win any legal battle to withhold large chunks of the Brexit bill, despite previous Government promises that the payment was conditional on a deal.
Mr Hammond’s comments angered Eurosceptics, who described his stance as “mystifying”. However, sources close to the Chancellor insisted he was as frustrated as his colleagues with the EU’s intransigence, and was merely setting out legal advice the Treasury had been given. [...]