Philip Hammond and Theresa May (Image: GETTY)
A Government source said: ”There are times it's reached boiling point with the Chancellor prepared to just walk away.” Number 10 is understood to be asking Mr Hammond to free up money from the £26.6billion "war chest" he set aside in case of a no deal Brexit to fund the plans. The source added: ”No one's denying there are some spending pressures but these are decisions to be taken by a successor in the round, not wasted on frivolous vanity projects or an attempt to bind the hands of the next person by making three-year pledges on their behalf."
A source close to the Chancellor added: "The Chancellor is 100 percent dedicated to getting on with the day job, promoting economic stability and ensuring prudent public finances."
Senior Government sources said that tensions between the Treasury and Number 10 officials have reached boiling point over the Prime Minister's spending intentions.
Mr Hammond is understood to be so against the plans that he is prepared to quit the Government in what would be an extraordinary move just weeks before the PM leaves office.
Tensions have surfaced over Mrs May's intention to spend up to £9billion per year over three years on education, totalling £27billion, including plans to build new schools and pay teachers higher wages, the well-placed source said.
