New Chancellor Philip Hammond has branded EU efforts to poach a vital $1 trillion market from the UK as “disgraceful,” The Sunday Telegraph can reveal, setting the scene for an almighty row between the Treasury and Brussels.

Mr Hammond was appointed to head the Treasury this week, putting him in prime position to oversee the financial industry and protect its interests in the face of EU hostility.

In his previous job as foreign secretary, he spoke out against a raid on the City which the UK successfully defeated – but which is flaring up once more as European leaders eye up valuable markets they hope to wrest from London.