Mr Hammond was grilled by hardline Tory MPs at Treasury questions today, who blasted him for supporting a second vote. Speaking at Treasury questions, Tory Philip Hollobone asked: “Given that the people have already decided, presumably the Chancellor doesn’t want a second referendum.” Mr Hammond replied: “I, contrary to some reports, have never advocated a second referendum. “I simply observed that it is a coherent proposition along with many others that have been discussed in this House.”

The Brexiteers questioned Mr Hammond’s views on staying in the EU customs union, and asked him whether he thought businesses could survive a no-deal Brexit.

In response to the Chancellor said he “sincerely hopes” Britain will not leave the EU without a deal.

Tom Pursglove, Conservative MP for Corby, asked the Chancellor: “Could the Chancellor of the Exchequer set out for the House why the customs union is the wrong policy choice for the future strength of the UK economy?”

Mr Hammond replied: “The Prime Minister negotiated a deal with the European Union which gave us many of the benefits of being in a customs union while preserving the ability to conduct an independent trade policy.

READ MORE: Philip Hammond to call for SECOND referendum in crunch Brexit Cabinet meeting TODAY

“We put that deal to this House of Commons effectively three times, and it was defeated three times, so we have to pursue other alternatives.”

Speaking about the event of a no-deal Brexit, Mr Hammond said that businesses are building “resilience” for a worst case scenario, if Britain leaves the EU without a deal.

Mr Hammond added: “We know that manufacturing companies have been building precautionary buffer stocks of imported components to give them resilience against any disruption at our ports in the event of a no-deal Brexit.

“This tends to be larger companies.”

Reassuring MPs over Britian’s preparedness for a no-deal, the Chancellor added: “If we were to find ourselves leaving the European Union without a deal, a situation which I sincerely hope will not arise, we have a full range of tools available to us.

“All the usual tools of fiscal policy, I have a headroom within the fiscal rules of just under £27 billion, as I set out at the Spring Statement, and the Government will work closely with the Bank of England in those circumstances to ensure that fiscal and monetary policy are used to support the UK economy.”

This comes as Prime Minister Theresa May holds last-minute talks with Germany and France in hopes they will back her request to extend Article 50 and delay Brexit until June 30.

The talks come ahead of an EU crunch summit this Wednesday, just two days before Britain is due to leave the EU.

Ms Merkel said Brexit could be delayed until 2020, while a spokesman for French President Emanuel Macron insisted a year delay was “too long”.

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