Rumours of rift between Philip Hammond and Theresa May’s aides are ‘tittle tattle’, says Michael Fallon

Claims that Chancellor Philip Hammond has fallen out with Theresa May’s closest aides were described by a Cabinet minister as “tittle tattle” today.

Defence Secretary Michael Fallon said the Prime Minister’s “top team” — who he said comprised May, Hammond, Home Secretary Amber Rudd, Foreign Secretary Boris Johnson and himself — were “working together” on the manifesto.

Today’s Times said Mr Hammond had “infuriated senior Downing Street aides” by moving away from the 2015 Tory promise not to raise VAT, tax or national insurance before the matter had been settled at No 10.

It said relations had been strained at the time of the Budget, when Mr Hammond tried to raise NIC on the self employed, and said both sides denied separate claims that Mr Hammond had initially resisted Mrs May’s flagship policy to cap energy bills.

Asked if the claims were true, Mr Fallon told ITV’s Good Morning Britain: “Absolutely not. The top team in government we are working alongside each other every day now on the manifesto.”

Downing Street said any suggestion of a rift between the Prime Minister and her Chancellor was “ridiculous” and an aide said: “I don’t recognise the story.”

According to the Times report, there was particular strain between the Chancellor and Nick Timothy, one of Mrs May’s two chiefs of staff, who was said to have been “incandescent” at claims that he was economically illiterate.