BRUSSELS is the “enemy,” Philip Hammond has declared, as he called on its leaders to behave like "grown-ups".

Labour responded swiftly saying the Chancellor was acting like Basil Fawlty on holiday and his “foolish” remarks would do nothing to help the Brexit talks towards a successful outcome.

Mr Hammond, who has faced a wave of criticism from some Conservatives over his gloomy approach to Brexit, hit back, dismissing as "bizarre" and "absurd" accusations that he has been talking Britain's economy down.

But admitting "passions are high" in the party, he insisted that he was fully signed up to the plans for Britain's exit and said the enemy is in Brussels.

Speaking in Washington, where he has been attending the annual meeting of the International Monetary Fund, the Chancellor told Sky News: "I understand that passions are high…that people have very strong views about this but we are all going to the same place.

"We all have the same agenda, we all signed up to the Prime Minister's Lancaster House speech, we're all signed up to the Article 50 letter, we're all behind the speech that she made in Florence.”

Mr Hammond then added: "The enemy, the opponents, are out there on the other side of the table. Those are the people that we have to negotiate with to get the very best deal for Britain."

But Peter Dowd for Labour branded the remarks “foolish” and showed the Chancellor was buckling under the pressure from those Tory MPs calling for him to be sacked.

The Shadow Chief Secretary to the Treasury said: “The tone of this rhetoric will obviously not unblock negotiations or help protect our economic interests.

“The Chancellor should be putting the country before the infighting in his own party when he is representing us overseas and refrain from acting like Basil Fawlty on holiday. It is vital that these negotiations do not lead to a situation where Britain crashes out of the EU without a deal, risking jobs and living standards.”

He added: “This weak government has squandered the past months of the Brexit negotiations, squabbling with each other rather than trying to get the best deal for Britain. If they are not up to the job then they should step aside and let Labour take over.”

Mr Hammond has come under fire from pro-Brexit Tories furious at what they see as his reluctance to prepare for the prospect Britain could leave the EU without a deal if talks in Brussels collapsed.

Lord Lawson of Blaby, the former Chancellor who served in the Thatcher Government, has led the calls for Theresa May to sack him, describing his actions as "very close to sabotage".

But in an interview with the BBC, Mr Hammond - who has consistently argued for a "softer" Brexit - insisted he was committed to gaining the best possible outcome for Britain in the negotiations.

"It is absurd to pretend that the process we are engaged in hasn't created some uncertainty but the underlying economy remains robust," he declared, adding: "I am committed to delivering a Brexit deal that works for Britain."

It has been suggested that the relationship between No 10 and No 11 has become so bad that Mrs May and her Chancellor “can’t bear” to be alone together and now insist on aides being present during meetings.

On Tuesday, tensions within Cabinet are said to have spilled over in a “robust” exchange on Brexit. No 10 denied there had been a row but, rather, a brief discussion.

Downing Street dismissed reports of a deepening rift between the PM and Mr Hammond, stressing that she still had full confidence in him.

Mrs May’s spokeswoman said: "They have a very good working relationship and they work very closely together."