Philip Hammond, pictured in Whitehall on Friday, blamed the Tory election disaster on plans for a hard Brexit

Philip Hammond has blamed the Tory election disaster on plans for a hard Brexit and hinted at a change in approach - fuelling fears Remainers could use the result to 'prise open' Britain's departure plans.

The Chancellor said the government believes younger voters swung behind Jeremy Corbyn to punish the Tories for their Brexit plans rather than because of 'enthusiasm' for Labour.

While Mr Hammond - a vocal Remainer - has reportedly also been out trying to stir up the City to seize the chance to push for a 'softer' departure from the EU.

But his maneuvering will further anger Brexiteers who have reacted with fury to speculation that Theresa May could tear up her Brexit plans and adopt a weaker approach.

German finance minister Wolfgang Schaeuble said the Chancellor hinted that the government could radically change tack on Brexit.

Speaking in English, Mr Schaeuble, a key ally of Angela Merkel, told Bloomberg: 'My British colleague Philip Hammond told me that that they are thinking about what does it mean that a lot of young voters voted for Labour, not for [the] Conservative Party.

'But they had the idea that the reason they voted for [them] was more distance to Brexit and not for enthusiasm for the Labour Party.'

There is growing concern among Brexiteer that the Tory party's humiliation at the polls could be used to try to unpick parts of the Brexit plans - despite last year's historic referendum.

Meanwhile, former Minister Robert Halfon, who was axed from his frontbench role on Tuesday, said the Conservative Party was 'on death row' and had failed to offer a positive vision to voters.

The Harlow MP was scathing about the election campaign which saw the Prime Minister lose her Commons majority, saying the Tories did not have a message to rival Labour's promise to stand up 'for the many not the few'.

Writing in The Sun, he said: 'The Conservative Party is on death row. Unless we reform our values, our membership offering and our party infrastructure, we face defeat at the next election - and potentially years of opposition.

'If we don't change it wouldn't matter if we had Alexander the Great or the Archangel Gabriel as leader. We face the wilderness.'

In an attack aimed at the Tory hierarchy - and campaign guru Sir Lynton Crosby - Mr Halfon said: 'Our election campaign portrayed us as a party devoid of values. 'Strong and stable' is hardly a battle cry.

Former Minister Robert Halfon has said the Conservative Party was 'on death row' and had failed to offer a positive vision to voters

'I cannot remember a time in the campaign when the Conservatives attempted to explain what we are really about: the party of the ladder, of aspiration and of opportunity.

'We let ourselves be perceived primarily as the party of 'austerity', failing entirely to campaign on our record of a strong economy or strong employment.

'Virtually nothing was said on the NHS or schools or the caring professions that work within them. Instead we created fear amongst pensioners, and threatened to take away school meals, handing a gift to our opponents.

'Is it any wonder that the Conservatives did not get a majority?'

Mr Halfon said Mrs May had struck the right tone when she entered Number 10, but her message had been lost during the election.

'When the Prime Minister first stood on the steps of Downing Street and talked about a Britain that works for everyone I thought she had nailed it. When we launched measures to help workers in the early stages of the election, I thought, perhaps, people might vote for us with their hearts as well as their heads.

'Like Labour, we had a moral message. Then it all got lost. Now may be our last chance to rediscover the moral compass that points to real victory.'

Mr Halfon suggested a change of name to 'the Workers Party' or 'the Conservative Workers Party' with a new symbol.

He also demanded a campaign message focused on a 'workers' charter' promising to boost skills, wages, rights, the NHS and measures to curb the rising cost of living by cutting fuel duty and capping energy bills.

Under Mr Halfon's plans, the Tory tree symbol would be replaced by a ladder suggesting the party's desire to help people improve their lives.

He told BBC's Newsnight: 'I genuinely believe we face potential calamity as a party because people do not understand our values, they see us just in terms of austerity.

'We have failed to get our message about being the party of the ladder of opportunity across and we failed to get a message that we are also the party for the poor.'

Michael Gove (pictured arriving at Cabinet today) said Theresa May understood the need to secure the 'maximum possible consensus' on Brexit after losing her majority

Mr Gove (pictured on ITV's GMB today) insisted the new approach was about ensuring the referendum result was honoured in the right way

Former Tory leader Iain Duncan Smith blasted a 'minority' of Remain critics in the Cabinet and warned them against trying to 'prise open' the negotiating plan.

Senior MP Steve Baker led a delegation of Conservatives to meet with Brexit ministers in Whitehall today amid growing alarm the Tory election disaster will be exploited by pro-EU figures to water down the Brexit deal.

Mr Baker was then appointed as a junior Brexit minister. The move could help Mrs May avoid unrest on the backbenches as Mr Baker has been a lynchpin of support for Brexit and could have organised against a deal hardcore Eurosceptics dislike.

Earlier Michael Gove, the newly installed Environment Secretary, said Mrs Mat's losses at the ballot box mean Remain supporters' fears needed to be heard.

He admitted conversations with Labour about the Brexit talks but insisted the revised approach was about ensuring the referendum result was honoured in the right way.

It is also an acknowledgement that without the big Commons majority she wanted Mrs May will not be able to get the agreement of Parliament for a hard Brexit deal.

Former Tory leader Iain Duncan Smith (file picture) blasted a 'minority' of Remain critics in the Cabinet and warned them against trying to 'prise open' the negotiating plan

The Prime Minister is scrambling to rebuild her position after the catastrophic election and is under pressure from Tory Remain supporters - led by Scottish Tory chief Ruth Davidson - to prioritise the economy over cutting immigration.

Former Tory leader William Hague today called for a cross party commission, that would also include business groups and trade unions, to help negotiate Brexit.

The calls came as the Brexit department was hollowed out by the loss of two of its three ministers. MP David Jones was sacked by Mrs May while Lord Bridges quit.

Mr Duncan Smith told the BBC: 'I think the Conservative party, people in cabinet who may well seem to think that they are going to start reopening all of this, the answer is I would not try and reopen this before you start the negotiations.

'Because all that you'll get is what we don't want at the moment, which is another argument and row going on in the governing party. It had a settled position.

'We had agreed that position before we went into the last election.'

Before his appointment, Mr Baker told MailOnline: 'I am optimistic for a good EU exit which minimises disruption and maximises opportunity.

'We have a Department for International Trade because we will determine our own trade policy as we look outwards to the world.'

Scottish Tory leader Ruth Davidson (pictured in Downing Street yesterday) led the charge for a new approach at a meeting of Mrs May's political cabinet in Downing Street yesterday

Former Tory leader William Hague (file picture) today called for a cross party commission, that would also include busines groups and trade unions, to help negotiate Brexit

Remain supporters believe Britain should put the economy ahead of other considerations, including leaving the single market.

Staying inside the free trading zone would mean tariff free trade with Europe but means accepting EU free movement and some EU laws.

Mr Gove, who returned to the Cabinet on Sunday night less than a year after Mrs May sacked him for disloyalty, told the Today programme such concerns now had to be considered.

He said: 'We as Conservatives were not returned with a majority, which means we need to proceed with the maximum of consensus.

'If you want to proceed with the maximum possible support, you engage in a conversation.'

Lord Hague joined the Tory calls for a change to Mrs May's Brexit approach today, warning the failure to secure a Commons majority raised the threat of a 'poor Brexit deal'.

He said the issues needed to be tackled in 'new ways' and said: 'Change the emphasis given to the UK's objectives, with a clear indication that economic growth will have priority over controlling the number of people entering the country for work.

'This would show a readiness to accommodate the views of Scottish Conservatives, business organisations and, to some degree, opposition parties, within certain parameters.'

Scottish Tory leader Ms Davidson led the charge at a meeting of Mrs May's political cabinet in Downing Street yesterday.

She urged the Premier to 'reach out' to her Brexit critics to build consensus behind a deal.

In a round of interviews today to mark his return to Cabinet, Mr Gove warmly endorsed the Prime Minister and insisted she should stay in post 'for as long as she wants to' and backed her to fight another election in five years time.

He said the Tory leader 'deserves all our support at this time' because she has 'amazing gifts and incredible talents'.

A chastened Mrs May apologised to Conservative MPs last night for getting the party into an election 'mess' and pledged: 'I will get us out of it.'

Mr Gove said today the Prime Minister had the 'grace to admit that mistakes were made' and has the 'full support' of all Tory MPs to remain in post.

He told Good Morning Britain: 'She should stay as Prime Minister for as long as she wants to. She has my backing as long as she wants it'.

When asked if she can stay for another five years and fight another election he replied: 'Yes, absolutely'.

There are concerns that Remain supporters in the Cabinet (pictured at today's meeting) are plotting to water down the Brexit plan

Mrs May's Cabinet met inside No 10 Downing Street today with Larry the cat on guard outside (pictured)

Mr Gove also defended his own record on climate change in the face of fury from green campaigners and said President Trump was 'unequivocally wrong' to withdraw from the Paris Accord.

He said: 'Yes, I think he is wrong. I think that we need international co-operation in order to deal with climate change.

'And I think the Paris Accord which my friend Amber Rudd had a huge role in helping to shape is a significant step forward.

'The only way in which you can deal with this challenge, the only way in which we can enhance the environment to pass on to our children in a better state is by working across borders.'

The Paris accord commits countries to holding global temperature rises to 'well below' 2C above pre-industrial levels, which will require global emissions to be cut to net zero by the second half of the century.

He also admitted that the Tories 'underestimated' Labour during the election.

'We underestimated some of the reasons behind Labour's support.

'We need to deliver what we believe in as Conservatives but we also need to understand that our public services need to be properly funded', citing the NHS and schools.

'It is important after this general election that we do two things. One, that we form a government that is capable of carrying through the public's wishes, including leaving the European Union. And at the same time we reflect on the fact that we didn't get that majority that we wanted, and therefore we need to be properly in listening mode to appreciate what the public's concerns are'.

The Prime Minister is scrambling to rebuild her position after the catastrophic election and is under pressure from Tory Remain supporters - led by Scottish Tory chief Ruth Davidson - to prioritise the economy over cutting immigration

Mrs May met her Cabinet for the first time since the election this afternoon (pictured) and welcomed new members including Mr Gove, who she previously fired

Mr Gove, a staunch Brexit supporter, was also asked about a Daily Telegraph report that senior Cabinet ministers were engaged in secret talks with Labour MPs to secure a soft Brexit.

Despite writing a column for the same edition of the paper, the former journalist said it was 'news to me'.

But he did say that if people politicians from other sides had something 'positive' to offer they should be 'brought in' and said they should be in 'listening mode'.

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This echoed the words of Scottish Tory leader Ruth Davidson last night.

The return of Mr Gove completes a remarkable political recovery for the former education and justice secretary, who was accused of disloyalty last year after he destroyed Boris Johnson's leadership hopes by launching a withering attack on his personal qualities.

Piers Morgan asked him what Boris had been like after he 'took a machete to his back'.

Mr Gove said that he had spoken to the Foreign Secretary over the weekend and said he had been 'very welcoming' when he returned to cabinet yesterday.

He said: 'Boris and I spoke at the weekend and we had a great friendly conversation. He was kind enough to welcome me back to the cabinet with a very generous tweet. And we were chatting yesterday in the margins of cabinet.'

Labour big hitter Tom Watson has claimed that Rupert Murdoch may have demanded that he return as a minister.

Mr Gove told the BBC: 'Tom sees Rupert Murdoch's hand behind everything. I think Tom believes that Rupert Murdoch picks the England cricket XI and the rugby first XV as well as decide who is on Britain's Got Talent. This is par for the course for Tom when it comes to political mischief making.'

The Times journalist made a dramatic Cabinet return on Sunday night as Theresa May tried to shore up support across all wings of the Conservative Party.

Mr Gove, who was sacked by Mrs May for disloyalty last year, was appointed as Environment Secretary, in a limited reshuffle that underlined the Prime Minister's weakened state.

The decision brings one of the cheerleaders for Brexit back to the heart of government, although the PM also handed out promotions to several pro-Remain ministers.

Sacking him from the role of justice secretary last year, Mrs May is said to have told Mr Gove: 'I have been talking to colleagues and the importance of loyalty is something on people's minds. I'm not saying there is no way back or that you'll never serve in my government, but it would perhaps help if you could demonstrate that loyalty from the back benches.'

Mr Johnson has indicated he was willing to bury the hatchet, posting a message on Twitter saying: 'It's a GOVErnment of all the talents. Welcome back to Michael!'

Mr Gove said he was 'flattered' to be offered the Cabinet post where he will oversee the complex transition of the farming and fishing industries to a post-Brexit world and take responsibility for strategy on cutting the pollution caused by diesel cars.

Green campaigners reacted with fury yesterday to Theresa May's decision to bring Michael Gove back into frontline politics as Environment Secretary.

The appeal of Jeremy Corbyn, pictured leaving his London home yesterday, was underestimated, Mr Gove said

Activists and politicians said he was 'entirely unfit' for the job given his previous interventions on green issues in parliament and as education secretary.

They pointed to his voting record – in which he has opted against eco-friendly measures such as a reduction in carbon emissions. He also voted against financial incentives for low carbon electricity generation. The PM, who banished Mr Gove to the backbenches because of his disloyalty when she became Tory leader last year, announced his new post as part of her re-shuffle on Sunday.

Caroline Lucas, the Green party co-leader and MP, said it was hard to 'think of many politicians as ill equipped for the role of Environment Secretary as Michael Gove'.

'His record of voting against measures to halt climate change and his attempt to wipe the subject from our children's curriculum show him entirely unfit to lead our country in tackling one of the greatest threats we face,' she said.

'This appointment is further evidence of both Theresa May's complete disregard for the environment and her desperation to hold together a government in chaos.'

In a speech at the launch of the Conservative Environment Network in 2014 Mr Gove described himself as a 'shy green'.

John Sauven, the chief executive of Greenpeace, said the Environment Secretary would have to move swiftly to prove 'he is better than his record suggests'.