Officials at the Ministry of Defence have been told to refuse future bookings until the Treasury loosens the purse strings and pays for previous trips.
However, it seems that there may be more to the row than simply an outstanding bill, as the MoD and the Treasury have found themselves in opposing trenches over the controversial National Security Review, which has suggested further cuts to the military's budget. He is seeking up to £2bn from the Treasury, the Times reported, at a time when Mr Hammond has already begun to spend some more money on services and infrastructure.
"Remainer Phil" insisted that the Armed Forces could make the cut from its current standing strength of 78,000 soldiers because this greatly reduced number would be sufficient for the Army to form a division to fight in a war.
Over the past year, Hammond, who proves to be a somewhat more hard customer, has used the military's aerial transport to make numerous worldwide and domestic flights to over 20 destinations in his capacity as the Treasury's head.
They report the Chancellor used BAE 146 jets, which also transports the royal family.
The more than 20 destinations to which Mr Hammond travelled, which also included Manchester, Leeds, Paris and Brussels, were all accessible by train or cheap flights.
A MoD source said: "At the same time as claiming our courageous armed forces don't need any more money and that the army only needs 50,000 troops, it is a huge double standard to willingly use their facilities at the same time as refusing to pay for them".
The Prime Minister is expected to meet Mr Williamson and Mr Hammond to talk about changes to the armed forces soon, but Brexit negotiations are now occupying her focus.