Boost for Hammond as public finances in better shape than expected

The Treasury says Mr Hammond’s package is created to “improve the living standards of ordinary working class people and their families”, in line with goals set out by Theresa May in her Tory conference speech last month.

“And, of course, expected markedly-slowing growth over the coming months will take a toll on tax receipts – although this is likely to show up more after the current fiscal year”.

Finance minister Philip Hammond is using his first detailed policy announcement to help prepare the British economy for “a new chapter”, a spokeswoman for Prime Minister Theresa May said on Wednesday.

The Treasury says the Autumn Statement will “improve the living standards of ordinary working class people and their families”.

National Living Wage to rise from £7.20 to £7.50 in April.

He is expected to announce a reduction of the taper rate to 63pc.

According to the Financial Times, mediocre economic growth, higher inflation and a lack of business investment is set to cost the Treasury £100bn.

Affordable-housing funding will be extended to include rent, shared ownership and rent-to-buy.

But it remains among the highest of the world’s rich nations and Mr Hammond has said public debt levels, equivalent to 84 per cent of GDP previous year, are “eye-wateringly large”.

The policy is effectively lifted from the Labour Party’s manifesto from last year’s general election, and represents a Government thinking beyond offering help to home-buyers – who are typically the beneficiaries of government hand-outs.

Commenting on the new investment, Shelter’s chief executive Campbell Robb said it would be welcomed by Jams crying out for “genuinely affordable” homes.

The shake-up will allow housing providers to offer a wide range of products including low-priced rentals and both shared ownership and “rent-to-buy” schemes to help struggling families get onto the housing ladder.

In further detail released by HM Treasury, it was announced the Finance Bill will also follow the Budget’s new timetable from 2018, helping “parliament to scrutinise tax changes before the tax year where most take effect”.

It marks an improved performance since earlier in the year when borrowing was falling much too slowly to meet Government targets – even before any impact from the European Union referendum.

An increase in the income tax personal allowance (36 per cent) and cuts to fuel duty (22 per cent) are also the proposals SMEs most want to see announced on Wednesday.