Philip Hammond believed he was going to be sacked by Theresa May during the election campaign, his Labour counterpart has claimed.
Shadow Chancellor John McDonnell said his Tory rival confided that he had been "preparing his pension" when asked about his role in the weeks leading up to the snap poll in June.
Many senior Conservatives were kept on a tight leash during the election campaign, which focused heavily on Ms May's abilities as a leader.
Mr McDonnell told Labour party activists that the Chancellor admitted to him that he thought he might have lost his job when the pair took part in the Queen’s Speech ceremony after the election.
It comes as Mr Hammond repeatedly failed to endorse Ms May as the Conservative leader to take the party into the next election.
Speaking at a fringe event at the Labour conference, Mr McDonnell said: “When Parliament reconvened...you troop down to the Lords and you listen to the Queen’s Speech etcetera.
“On the way back, you know, you pair up with your counterpart. You pair up with your counterpart, so I have to walk back with Philip Hammond.
“It’s small talk, you know, ‘How is the election campaign for you?’
“No word of a lie, he said, ‘For most of it I was preparing my pension.’ It’s true, it’s exactly right.
“He said, ‘Oh, I shouldn't have said that’. He was expecting to be sacked.
“I’m not that cruel but I wanted to say to him - ‘Don’t worry, we're going to sack you.’”
Earlier, the Chancellor was repeatedly asked to give his support to Ms May’s plan to stay in post until 2022 but failed to give her his backing.
During a trip to Scotland, Mr Hammond declined to say Ms May is the “optimum” individual to lead the Conservatives into the 2022 election despite being asked four times.
He said: “Well I am not going to get involved in the discussion about future Conservative Party leadership politics.
“Theresa May has made it very clear that she has a job to do, I am completely behind her in doing that job.”
