Every pound of European Union funding will undergo a "national interest” test to see whether it should continue in the wake of Brexit, a Cabinet minister has said in a letter.

David Gauke, the Chief Secretary to the Treasury, said that Britain will only match EU funding after the country leaves the bloc if it can be proved to benefit the nation.

It comes after Philip Hammond, the Chancellor, pledged that farmers, universities and some of the nation's poorest regions will continue to receive billions of pounds worth of subsidies after Britain leaves the EU.

Mr Hammond said he wants to give people "reassurance... stability and certainty" by honouring EU funding worth more than £4billion a year.