Philip Hammond was forced to water down Treasury plans for a no-deal Brexit amid concerns that they bore similarities to "Project Fear", Government sources have said.

Ministers will on Thursday publish the first of 84 technical documents outlining contingency plans in the event that the UK leaves the EU without a deal next year.

However, two Government sources told The Telegraph that concerns were raised in Whitehall about the "tone" of several of the Treasury documents.

The sections on the "current status" of arrangements with the EU were too "upbeat" while the implications of a no-deal Brexit were seen as "negative".

They have since been redrafted to ensure that they are more factual, the sources said. Treasury papers on no deal Brexit are thought to include reports on the impact of a no deal Brexif on financial services, VAT and state aid.