Business minister Claire Perry has broken ranks to warn that a no-deal Brexit would be “catastrophic” and “a way of crashing the economy”.

Theresa May and other cabinet ministers have insisted the UK can prosper even if it crashes out of the EU without an agreement – insisting that remains an option.

But Ms Perry said: “No deal is a recipe for a catastrophic series of consequences.

“It’s also a way of crashing the economy and of doing great damage to our most productive industries.”

Speaking to Sky News, Ms Perry agreed the UK had to be ready for the danger of crashing out, saying: “We have to be prepared for it and we are preparing for it.”

Nevertheless, her warning undermines the prime minister’s determination to claim the UK is seriously contemplating a no-deal – something widely seen as a bluff on the continent.

They also mark the very different approach of the business department, headed by Greg Clark, who – at the weekend – insisted a Brexit agreement is essential.

The comments are a far cry from Ms May’s continued insistence, repeated after the EU threw out her Chequers plan, that “no deal is better than a bad deal”.

People's Vote march – demanding vote on final Brexit deal Show all 30 1 /30 People's Vote march – demanding vote on final Brexit deal People's Vote march – demanding vote on final Brexit deal Mandatory Credit: Photo by Guy Bell/REX (9725259aq) Marching down Whitehall - People's March for a People's Vote on the final Brexit deal. Timed to coincide with the second anniversary of the 2016 referendum it is organised by anti Brexit, pro EU campaigners. People's March for a People's Vote, London, UK - 23 Jun 2018 Guy Bell/REX Rex People's Vote march – demanding vote on final Brexit deal Demonstrators carry banners and flags as they participate in the People's March demanding a People's Vote on the final Brexit deal, in central London on June 23, 2018, the second anniversary of the 2016 referendum. Tens of thousands of people demonstrated in London on Saturday calling for a second vote on Britain's departure from the European Union. / AFP PHOTO / Niklas HALLE'NNIKLAS HALLE'N/AFP/Getty Images NIKLAS HALLE'N AFP/Getty Images People's Vote march – demanding vote on final Brexit deal A young protestor shouts as she takes part in the People's Vote demonstration against Brexit Getty Images People's Vote march – demanding vote on final Brexit deal A woman holds a placard as she joins EU supporters, calling on the government to give Britons a vote on the final Brexit deal, participating in the 'People's Vote' march in central London, Britain June 23, 2018. REUTERS/Henry Nicholls HENRY NICHOLLS Reuters People's Vote march – demanding vote on final Brexit deal epa06833888 Pro-EU demonstrators take part in a People's March anti-Brexit rally in Parliament Square in London, Britain, 23 June 2018. Protesters are calling for a referendum on the final deal. The protest is taking place on the second anniversary of the Brexit referendum. EPA/ANDY RAIN ANDY RAIN EPA People's Vote march – demanding vote on final Brexit deal A protester's pro-EU t-shirt EPA People's Vote march – demanding vote on final Brexit deal epa06833892 A pro-EU demonstrator waves a European Flag during a People's March anti-Brexit rally in Parliament Square in London, Britain, 23 June 2018. Protesters are calling for a referendum on the final deal. The protest is taking place on the second anniversary of the Brexit referendum. EPA/ANDY RAIN ANDY RAIN EPA People's Vote march – demanding vote on final Brexit deal Demonstrators carry banners and flags as they participate in the People's March demanding a People's Vote on the final Brexit deal, in central London on June 23, 2018, the second anniversary of the 2016 referendum. 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Tens of thousands of people demonstrated in London on Saturday calling for a second vote on Britain's departure from the European Union. / AFP PHOTO / Niklas HALLE'NNIKLAS HALLE'N/AFP/Getty Images NIKLAS HALLE'N AFP/Getty People's Vote march – demanding vote on final Brexit deal epa06833964 A young pro-EU demonstrator takes part in a People's March anti-Brexit rally in Parliament Square in London, Britain, 23 June 2018. Protesters are calling for a referendum on the final deal. The protest is taking place on the second anniversary of the Brexit referendum. EPA/ANDY RAIN ANDY RAIN EPA People's Vote march – demanding vote on final Brexit deal Gina Miller and Caroline Lucas EPA People's Vote march – demanding vote on final Brexit deal epa06834044 Tens of thousands of people march through London during a People's March anti-Brexit demonstration, in London, Britain, 23 June 2018. Protesters are calling for a referendum on the final deal. The protest is taking place on the second anniversary of the Brexit referendum. EPA/ANDY RAIN ANDY RAIN EPA People's Vote march – demanding vote on final Brexit deal epa06833264 Thousands of people march through London during a People's March anti Brexit demonstration in London, Britain, 23 June 2018. Protesters are calling for a referendum on the final deal. The protest is taking place on the second anniversary of the Brexit referendum. EPA/ANDY RAIN ANDY RAIN EPA People's Vote march – demanding vote on final Brexit deal Tens of thousands of people march through London EPA People's Vote march – demanding vote on final Brexit deal epa06833265 Thousands of people march through London during a People's March anti Brexit demonstration in London, Britain, 23 June 2018. Protesters are calling for a referendum on the final deal. The protest is taking place on the second anniversary of the Brexit referendum. EPA/ANDY RAIN ANDY RAIN EPA People's Vote march – demanding vote on final Brexit deal Demonstrators at the People's Vote March Getty People's Vote march – demanding vote on final Brexit deal 'Two months too young to decide on my future' REUTERS People's Vote march – demanding vote on final Brexit deal Crowds taking part in the People's Vote march for a second EU referendum at Trafalgar Square in central London. PRESS ASSOCIATION Photo. Picture date: Saturday June 23, 2018. See PA story POLITICS Brexit. 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Other senior ministers, led by Jeremy Hunt, the foreign secretary, and Dominic Raab, the Brexit secretary, have argued Britain could “thrive” after crashing out, after initial disruption.

Tom Brake, the Liberal Democrat Brexit spokesman and supporter of the anti-Brexit Best for Britain group, said: "Claire Perry speaks the inconvenient truth, No deal would be a disaster for the UK.

"But she must be just as candid in admitting that Chequers would be nearly as damaging. That is why we need a final say on the deal and a chance to exit from Brexit."

Ms Perry was a strong Remain supporter, who hit the headlines in February 2017, when she branded hard Brexit supporters in the Tory party “like jihadis”.