Amber Rudd has performed an incredible u-turn after saying no-deal would cause "generational damage to the economy".
Today she admitted there are "no guarantees" that people will not lose their jobs but she instead described it as a "challenge".
It is an incredible volte face from the Remain-supporting minister who made the original stark warning ahead of a possible no-deal exit in March.
The Work and Pensions Secretary supported Boris Johnson's rival Jeremy Hunt in the leadership contest and famously said of the new PM that he was "not the man you want to drive you home at the end of the evening".
But she rowed back from the more extreme of her criticism of Mr Johnson when she accepted the offer to join his cabinet keeping her role in Work and Pensions.
Today said there are "no guarantees about jobs, in or out, under any economic circumstances", and said a no-deal Brexit would be "far worse than a deal Brexit".
Ms Rudd said the Government is focused on getting a deal, but that they have to be prepared should a no-deal situation arise on October 31.
Speaking on ITV News, Ms Rudd said: "A no-deal Brexit is definitely going to be a challenge for the economy, which is why the Government is putting together so much preparation should it come to that, and we are very clearly focused as a Government that we want to get a deal."
Asked about previous comments she made in which she said a no-deal Brexit would cause "generational damage to the economy", she said: "I can tell that a no-deal Brexit would be far worse than a deal Brexit, which is why the Government is so focused on trying to get that.
"But we are also putting in place a lot of preparation to make sure that, should it come to that, we will have done all we can to mitigate against any difficulties."
She added: "I still think it will be a challenge, but we are doing all we can to mitigate against those difficulties."
Asked if she could guarantee that no-one would lose their jobs as a result of a no-deal Brexit, Ms Rudd said: "Listen, there are no guarantees about jobs, in or out, under any economic circumstances.
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