Philip Hammond’s suggestion that Britain could pay for access was denied by Downing Street

Downing Street has disputed a suggestion by Philip Hammond that the UK could keep paying into the EU budget after Brexit in exchange for British banks getting privileged access to European markets.

The Times revealed yesterday that government figures in EU capitals were examining ways to tailor a trade deal that includes financial services if Britain keeps making substantial payments to the bloc — despite the chief negotiator Michel Barnier’s insistence that the EU could only offer an agreement that excluded banking.

The chancellor appeared to embrace the idea. Asked in Berlin if Britain could pay the EU for banking access, he said: “We will talk about all of these things.”

Downing Street played down the idea. “We will not be paying for market access,”