PHILIP Hammond was called “a stubby pencilled accountant” in a clash in Cabinet with another senior minister over immigration.

The PM’s top table met on Monday to discuss a post-Brexit immigration system.

During it, the Chancellor called for flexibility in the new rules being drawn up by the Home Office to allow bosses to fill vacancies with low skilled migrants from abroad.

Mr Hammond went on to cite a restaurant in his Surrey constituency that can’t hire enough staff to wait all the tables to back his argument.

But he was immediately challenged by new Health Secretary Matt Hancock, who is 23 years the Chancellor’s junior.

Tory rising star Mr Hancock told the 62 year-old Treasury chief that his restaurant should offer higher wages to entice more Brits to do the job instead.

In a curt exchange in front of the PM, trained economist Mr Hancock, 39, added: “We shouldn’t be stubby pencilled accountants because this is about a vision for the country”.

Another Cabinet minister who witnessed the exchange told The Sun: “Matt really went for Philip, and in front of all of us. It was quite a moment, and Philip didn’t seem to know how to take it”.

Mr Hancock, who worked as George Osborne’s chief of staff when he was Shadow Chancellor, is a passionate supporter of Home Secretary Sajid Javid’s agreed plan to end low skilled immigration but boost arrivals of higher skilled workers.

Allies say the Health supremo believes the ground breaking move after Brexit will help boost Britain’s productivity, which has been lagging in the doldrums for years.

But Mr Hammond has adopted the Treasury’s long-held view that a liberal immigration system of all workers is key to keeping the British economy afloat because of the nation’s ageing population.