Penny Mordaunt is expected to become the first Cabinet minister to unveil detailed plans for a “managed" no deal to slash the UK's Brexit bill in a move that will fuel leadership speculation.

The International Development Secretary is set to unveil her own plans to unblock the Brexit logjam by agreeing the two-year transition period after Britain leaves the EU on March 29 to allow the UK to develop a "“maximum facilitation” scheme to trade with the European Union.

This would involve the UK continuing paying £10billion a year into the EU while plans are laid for an organised exit in early 2021. A £20billion bill to take Britain out of the EU is just over half the planned £39billion “Brexit bill” which has been agreed with Brussels.

Ms Mordaunt is one of a number of senior Eurosceptic Conservatives vying to succeed Theresa May as leader when she quits before the 2022 general election.

She is hoping to set out her plans on Monday night on the eve of a Cabinet meeting on Tuesday which is set to give serious consideration to no-deal planning.