Brexit secretary confirms deal expected by mid-November

Media playback is unsupported on your device                  Media caption What to expect in the Budget

Media playback is unsupported on your device Media caption What to expect in the Budget

And he rejected as "not sufficient or effective" Mr Raab's proposal that he could update the committee by letter until the deal was agreed.

"I can't see how tax cuts for the wealthiest can be the top priority when our police are so stretched and there are people dying on British streets for want of a roof over their head".

Mr Coveney is in Paris this evening where he said major progress will have to be made in the next week for this deadline to be met. "I think he has abandoned any idea of getting to budget balance by the mid-2020s".

If the OBR downgrades forecasts in the coming years, Mr Hammond will have "have painted himself into a bit of a corner", said Mr Johnson.

Mr Hammond also indicated he was ready to bow to the growing clamour from Tory backbenchers for extra cash to ease the transition to Universal Credit when its rolls out nationally from next year.

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He told BBC Radio 4's Today: "We retain an ambition to balance the budget".

The Chancellor dismissed suggestions that he had chopped down the "magic money tree" and burnt the lot. "I'm not going to get involved in the interpretation you choose to put on that", he said.

In the Budget statement the chancellor signalled austerity was "coming to an end", and said the government would deliver a "double deal dividend" if an agreement was reached with the European Union: "a boost from the end of uncertainty; and a boost from releasing some of the fiscal headroom I am holding in reserve".

But Labour leader Jeremy Corbyn labelled Mr Hammond's statement as a "broken promise Budget".

"Suppose the public finance forecasts deteriorate significantly next year?" "The scale would be very hard to predict, given the lack of precedent".

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The changes had been due to come into force in 2020.

Although spending on the NHS will rise "substantially" as a result of the "big upward revision" to overall spending plans announced by the Chancellor on Monday, the rate of improvement will be "nothing particularly historic", remaining lower than the average over the health service's 70-year history, said Mr Johnson. And the Treasury calculated the cumulative effect of increases in tax thresholds since 2010 at £1,200 for basic rate payers and £1,800 for those paying the higher rate.

Speaking in Paris, Ireland's foreign minister Simon Coveney said he believed a deal was possible, but was less positive a solution had been found on how to stop physical infrastructure being installed on the Northern Irish border in the absence of a trade deal.

On a narrow definition, Mr Hammond's package could be seen as an "end to austerity, said Mr Johnson".

"But what the OBR gives the OBR can take away".

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The Prime Minister and Chancellor were grilled over how prepared the United Kingdom was for the different potential Brexit outcomes, as well as answering questions over measures announced in Monday's Budget - including the introduction of Digital Services Tax.

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