Philip Hammond was forced to rewrite Treasury plans for a no-deal Brexit after they were likened to Project Fear, government sources claimed last night.
Ministers are due to publish the first of 84 documents detailing contingency plans this week.
However, two Government sources said that concerns were raised with Chancellor Mr Hammond over the ‘tone’ of several Treasury reports.
Sections on the current status of EU arrangements were too ‘upbeat’, while the consequences of leaving the EU without a deal were portrayed as ‘negative’.
They have since been amended to ensure they are more factual, the sources told The Daily Telegraph.
Treasury papers are thought to include analysis on the impact of a no-deal Brexit on financial services, VAT and state aid. It follows a series of leaks that suggested the Government was ready to release ‘Armageddon’ scenarios.
They said the Army could be put on standby to deal with shortages of medicine, fuel and food within a fortnight of leaving the EU.
Tory MPs warned the Government’s ‘kamikaze’ approach to no-deal planning was handing the initiative to the EU in negotiations.
Brexit Secretary Dominic Raab has insisted that technical documents must be ‘serious and sober’
Officials say they want them to represent ‘Project No Fear’.
The Government was accused of running Project Fear in the run-up to the 2016 referendum after making wild predictions about the economy crashing.
It is understood that the publication of the most controversial Treasury documents will be delayed until next month.
Meanwhile Liam Fox will today pledge to make Britain a ‘21st century exporting superpower’ after Brexit. The International Trade Secretary will urge the country to ‘set its sights high’ as he outlines a strategy to boost the sales of goods and services overseas so they account for 35 per cent of UK GDP. instead of the current 30.