Philip Hammond, the Chancellor, opened significant Cabinet splits over Brexit and signalled that the Government is prepared to backtrack on its threat to leave the EU without a deal.

Here's Steven Swinford's analysis of his interview on BBC Radio 4's Today programme:

Can Britain have its cake and eat it?

Philip Hammond directly contradicted Boris Johnson, the Foreign Secretary, over the UK's prospects after Brexit.

He insisted that there will be "significant consequences" from leaving the Single Market and the Customs Union.

He said: "And I think the fact that we have set that out very clearly has sent a clear signal to our European partners that we understand that we can’t cherry pick, that we can’t have our cake and eat it, that by deciding to leave the European Union and negotiate a future relationship with the EU as an independent nation, there will be certain consequences of that. And we accept those."

Will Britain leave the EU without a deal?

Theresa May, the Prime Minister, has repeatedly insisted that "no deal" is better for Britain than a "bad deal".

Mr Hammond appeared to directly contradict her, insisting: "We are going to get a deal".

He said: ""I'm very confident we will not get an outcome that is a worst case outcome for everyone. That would be ridiculous.

"We are going to get a deal."

He refused to back Boris Johnson’s claim that it would be “perfectly okay” to leave the EU without a deal.

Asked about this, Mr Hammond said the government had plans for after we leave the EU “in a huge variety of different, possible outcomes”.

EU nationals cut off date

Ministers had been preparing for today to be the "cut off date" for EU migrants, with those arriving after facing future restrictions after Brexit.

Mr Hammond, however, signalled that the date will be delayed until after Britain leaves the EU, which will raise fears of a surge in the numbers of migrants.

He said: "Of course they can come here after today because we remain full members of the European Union with all the obligations and all the rights.

"We remain full members of the European Union over the next two years. What we have also said is we want to negotiate at the earliest possible stage the protection...

Can we leave without paying anything?

Peers have suggested that Britain is under no obligation to pay anything after Britain leaves the European Union.

Mr Hammond rejected claims that the UK will have to pay a £50million Brexit "divorce bill", but suggested the UK will pay something.

He said: "Our negotiating partners on the other side will have a different view.

"We will look to agree with them the principles of how we settle the rights and obligations that we as a departing member have.

"We simply do not recognise some of the very large numbers that have been bandied about in Brussels."

Have you been sidelined?

Mr Hammond rejected claims that he had been sidelined in recent weeks after being forced into a climbdown over plans to raise national insurance.

Asked if he had seen the letter, he replied: "Of course I have."

"I haven't felt rather marginalised in recent weeks," he said.