The Conservatives and Democratic Unionist Party came close to agreeing a formal 'confidence and supply' agreement two years ago in the days after the 2015 general election, The Daily Telegraph can disclose.

Representatives of David Cameron and George Osborne held secret talks with senior DUP figures and drew up a formal “draft agreement” for the DUP to support the Tory Government after the narrow election victory in 2015.

The news came as the DUP and Tories finalised details of their confidence and supply agreement to prop up Theresa May's minority Government and could unveil broad principles as soon as Tuesday.

Spending on the army, navy and air force looks set to be boosted after the DUP demanded that the Conservatives increases defence spending as the price of propping up a minority government.