Experts said Hammond’s borrowing figures were flattered by the reclassification of housing associations into the private sector, taking some £66 billion in debt and up to £5 billion a year in interest payments off the public books.

 

But the CEBR’s chief economic adviser Vicky Pryce added that Hammond was in a “much worse position all round”, saying: “The bad news is that the forecasts have been revised downwards for every year to reflect the reality of what is in fact going on in the economy: Brexit uncertainty, disposable incomes under pressure and a substantial lower productivity growth.

 

“This downgrade affects what room for manoeuvre Hammond has for increased borrowing and spending.”

 

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