Treasury minister John Glen has denied the Chancellor is attempting to bribe MPs into voting for a Brexit deal.
Philip Hammond warned MPs that a proposed £26.6billion windfall would have to go on keeping the economy stable if the UK left the EU without an agreement.
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However Mr Glen told talkRADIO’s Ross Kempsell the money was “legitimate headroom”.
He said: “I wouldn’t characterise it as a bribe.
"It is legitimate headroom that the chancellor has built up ready for all eventualities and obviously we want to be able to spend it in away that prioritises public services, investment in infrastructure and the things that people need to create further growth for the economy.”
Chancellor 'looking to find best way forward'
Mr Glen also denied the Chancellor was open to a cross-party renegotiation on Theresa May’s defeated Brexit deal.
Mr Hammond told MPs today they had a "solemn duty to seek a compromise", prompting speculation that he no longer supported the Prime Minister's proposals.
However Mr Glen said the Chancellor “will be looking to find the best way forward” but was committed to Mrs May’s deal.
He added: “He’s committed to securing the best outcome for the country, which means securing a deal.
“Obviously that deal has evolved and his full on priority, like all of the cabinet, is to find an outcome that parliament can live with and the country can live with.”