Hammond unveils updated 'Spring Statement' outlook with higher revenue

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At the Autumn Statement the OBR predicted public sector net borrowing of £49.9bn for the 2017-18 fiscal year, significantly lower than the £58.3bn borrowing for the year to April expected only a year ago.

The statement here is not likely to contain any major announcements, as Hammond will probably save that for November.

There was further good news when Hammond revised down national debt forecasts to reach a relatively healthy 0.9 per cent of GDP in 2022, down from 1.8 per cent in 2018.

Shadow Chancellor John McDonnell responded to the statement by saying Hammond's "complacency is astounding".

Earlier on Tuesday, the Organisation for Economic Cooperation and Development said Britain would grow more slowly than all the other Group of 20 leading economies this year.

Mr Hammond said he hoped this weekend's forthcoming summit of the G20 developed nations in Argentina would help to set out some concrete steps for achieving that.

Traditionally, the Chancellor of the Exchequer has delivered two statements to Parliament each year containing budget measures and economic forecasts: one in Spring and one in Autumn.

Citing the success of the five pence plastic bag levy, the Treasury will be gathering evidence from environmental organisations, businesses and individuals on how the tax system can be used to reduce the UK's reliance on plastics.

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Furthermore, the government has said that it is working with 44 areas which have submitted bids to the Housing Infrastructure fund, to make sure that only those homes that are needed are being built.

With an expected drop in borrowing, higher-than-predicted GDP growth of 1.7% for 2017 and the recent elimination of the Government's deficit on day-to-day spending, Mr Hammond is expected to tell MPs that the United Kingdom is reaping the reward for years of austerity.

The predictions, made by Office for Budget Responsibility, would put the United Kingdom among the slowest among major economies as global growth picks ups, and are also drastically more pessimistic than those from before the Brexit referendum.

The OBR expects inflation to fall from its peak of 3% to the Bank of England's 2% over the next 12 months.

He said it will remain unchanged at 1.3 per cent in 2019 and 2020, before picking up to 1.4 per cent in 2021 and 1.5 per cent in 2022.

The OBR has already upgraded its fiscal forecasts twice over the previous year, in March 2017 and November, as tax receipts have come in stronger than previously expected.

Chancellor Phillip Hammond has called for a deeper look at how tech giants such as Google and Facebook are taxed.

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