'Most top UK ministers back Brexit transition period'

Hammond, who supported remaining in the EU at last year's referendum, is seen as the voice of a so-called 'soft Brexit' within Prime Minister Theresa May's cabinet, favouring prioritising trade ties with the EU over curbing immigration.

He has repeatedly talked about the need for a transitional deal, saying such an arrangement would see Britain replicate as much as possible the existing arrangements in order to minimise the impact on business.

"Five weeks ago the idea of a transition period was quite a new concept, I think now you would find that pretty much everybody around the cabinet table accepts that there will be some kind of transition," Hammond told the BBC's Andrew Marr show.

"We're into a real process now with the start of negotiations and I think you'll find the cabinet rallying around a position that maximises our negotiating leverage and gets the best possible deal for Britain." Brexit minister David Davis is due in Brussels on Monday for a first full round of Brexit talks.

Hammond said the government needed to provide as much clarity as possible, as soon as possible, to restore business and consumer confidence and get the economy moving.

"It is absolutely clear that businesses, where they have discretion over investment, where they can hold off, are doing so and you can understand why, they are waiting for more clarity about what the future relationship with Europe will look like," he said.

Hammond said the length of any transitional period would depend on how long is needed to get new systems in place to handle areas such as customs and immigration, but it should be a defined period and was likely to need to be "a couple of years".

Hammond has laid bare Cabinet infighting over Brexit, suggesting other ministers are out to get him because he is pushing for Theresa May to change course. The Chancellor said damaging stories about him were coming from "people who are not happy with the agenda that I have", which is to steer Britain towards a transitional exit deal.

The claim came as Hammond all-but admitted he had told the Cabinet that public sector workers are "overpaid" – while denying he said "even a woman" can drive a train.

The leaks of his remarks in Cabinet meetings have made front-page headlines in recent days, prompting claims they are coming from rival ministers.

Asked why colleagues are "going for you", Hammond said: "If you want my opinion, some of the noise is generated by people who are not happy with the agenda that I have—over the last few weeks — tried to advance, of ensuring that we achieve a Brexit which is focused on protecting our economy, protecting our jobs and making sure we can have continued rising living standards in the future."

The Chancellor said he did not know if the stories were being placed in newspapers by "hard core Brexiteers". Asked, on the BBC's Andrew Marr programme, if a leadership contest to succeed May is underway, he replied: "I certainly hope not – and if there is I'm no part of it."

The Chancellor lashed out at his Cabinet rivals as he dismissed Brexiteer claims of a windfall from leaving the EU, after the notorious promises of an extra £350m a week for the NHS.