Philip Hammond told business leaders that the “threat” of a no-deal Brexit could be taken “off the table” within days and potentially lead to Article 50 “rescinded”, a leaked recording of a conference call reveals.

The Chancellor set out how a backbench Bill could effectively be used to stop any prospect of no deal. He suggested that ministers may even back the plan when asked for an “assurance” by the head of Tesco that the Government would not oppose the motion.

He claimed next week’s Bill, which could force the Government to extend Article 50, was likely to win support and act as the “ultimate backstop” against a no-deal Brexit, as a “large majority in the Commons is opposed to no deal under any circumstances”.

A recording of the call, passed to The Daily Telegraph, recounts how the Chancellor, Greg Clark, the Business Secretary, and Stephen Barclay, the Brexit Secretary, spent nearly an hour talking to the leaders of 330 leading firms.

They included the heads of Siemens, Amazon, Scottish Power, Tesco and BP, all of whom warned against no deal.