UK's Treasury chief says Brexit deal 'doable' by November

Weekly Pound to Euro exchange rate chart

Sentiment, however, was hit earlier on Monday by warnings from a former junior minister, Steve Baker, that the ruling Conservative Party could face a split if Prime Minister Theresa May persisted with her Brexit blueprint, known as the "Chequers" proposals.

When negotiating, the prime minister needs to demonstrate her intent and also her power to deliver, Mr Baker told the Press Association. One of those present said opposition to her leadership has hardened over the summer.

"You have seen over the summer I think an intensification in the talks - that is obviously something which we called for - and you have seen progress continuing to be made in relation to that withdrawal agreement", May's spokesperson said.

Mr Baker, a leading figure in the pro-Brexit Tory European Research Group, said the party's annual conference in Birmingham, starting on September 30, could prove a decisive moment as Mrs May is forced to acknowledge the scale of grassroots opposition to her proposals.

Steve Baker, who quit as a Brexit minister in July, claims at least 80 MPs are prepared to vote down the Chequers plan in the Commons.

The toxic atmosphere between the two wings of the Conservative Party was vividly illustrated in the reaction to Mr Johnson's incendiary Mail on Sunday column.

In an article in the Mail on Sunday newspaper, Johnson pressed his attack on May's plan, calling it "a humiliation" that opens "ourselves to perpetual political blackmail". The rift deepened this week with Johnson comparing May's plan to a "suicide vest" on Britain's constitution.

Home Secretary Sajid Javid rebuked his former Cabinet colleague, saying "there are much better ways to articulate your differences".

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Some Brexiteers say those proposals would ensure the EU kept control over swathes of the British economy and thus run counter to the spirit of her manifesto pledge to leave the EU Customs Union and the Single Market. "If it isn't now, I will make sure it is later".

Pro-Brexit Tories are said to have spent several hours plotting to oust her on Tuesday night because they think she's betraying their vision of a clean break from the EU.

Freeman, who previously headed up No 10′s policy unit, said he had not discussed his proposals with the PM but insisted that a leadership contest need not be "chaotic".

"The Prime Minister is working hard to secure a deal and hopes all MPs will be able to support it".

She said: "I've been asked before whether it's my intention to lead the Conservative Party into the next general election, I answered that question before - I'm in this for the long term".

"I hope that the Prime Minister will take on board what she's heard and chuck Chequers".

The trade union movement is preparing to throw its weight behind a public vote on the final Brexit deal because of fears the United Kingdom is going to "crash out" of the EU.

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