Philip Hammond will be making a "huge mistake" if he endorses "nonsensical" figures which suggest Britain's economic growth will collapse next year, Conservative MPs have warned amid a Cabinet split over the Autumn Statement.

The Chancellor is said to have privately warned that without economic stimulus growth next year could be as low as 0.8 per cent, compared to predictions in the March Budget of 2.2 per cent.

The suggestion, just days after official figures defied forecasts and showed that the economy had grown faster than expected following the EU referendum vote, infuriated some Tory MPs.

Liam Fox, the International Trade Secretary, has warned that the Chancellor must not go on a spending spree because it will make voters think there is a reason to panic over Brexit.

Dr Fox said: "There is no need for any economic stimulus in the Autumn Statement. The economy is in good shape. The last thing we need is a George Osborne-style emergency Budget. We want a 'steady as she goes' Autumn Statement.

"We need common sense, not hyperbole and panic. There's no reason to panic. If you go on a spending spree then people will think there's a reason to panic."