Families will be advised not to book holidays after next March, according to contingency plans being drawn up to prepare for a no-deal Brexit.

The proposed guidance, which will shock the travel industry, was expected to be discussed at last week’s cancelled cabinet meeting, after civil servants were told to ramp up emergency planning.

Senior officials have explored the idea with at least one cabinet minister and discussed the impact that the advice could have on specific tour operators amid fears it might bankrupt them. A leak inquiry was under way in No 10 last night to establish how the proposal became public.

One option is for the government to cover losses to holiday companies, according to a source familiar with the talks. Steps are