Hammond tells MPs ‘era of austerity finally coming to an end’

Philip Hammond promised a Budget for "the strivers, the grafters and the carers" as he set out his tax and spending plans in the Commons.

In his last scheduled Budget before Brexit, Mr Hammond promised his proposals would pave the way for a "brighter future".

His comments come after Prime Minister Theresa May promised she was ending years of austerity.

"The era of austerity is finally coming to an end," Mr Hammond told MPs.

Downing Street has insisted that the Budget's spending announcements are fully funded, regardless of whether the UK secures a Brexit deal, in what has been viewed as a rebuke to the Chancellor.

Mr Hammond warned at the weekend that his economic plans depend on a successful outcome to the Brexit negotiations with Brussels.

In the event of a no-deal break with the EU, he said he would be forced to tear them up and institute an emergency budget to set the economy on a "new direction".

But Theresa May's official spokesman insisted that the Chancellor was indicating that he was ready to use his "fiscal firepower" to shore up the economy if the UK withdraws without a deal.

In his Budget statement, Mr Hammond said he was setting aside an extra £500 million for Brexit preparations, adding that "if the economic or fiscal outlook changes materially in-year I reserve the right to upgrade the Spring Statement to a full Fiscal Event".

Speaking in the Commons Mr Hammond said he was promising a "Budget for hard-working families" and told MPs "we have reached a defining moment on this long, hard journey" after repairing the damage to the public finances caused by the financial crash.

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