Budget live: Chancellor sets out his spending plans

Live coverage as Chancellor Rishi Sunak delivers his Budget setting out plans for a post-coronavirus economy, boosted by better-than-expected forecasts but against a backdrop of a rising cost of living.

12.01pm

Boris Johnson is on his feet in the Commons for Prime Minister’s Questions. Mr Sunak is by his side and the House is packed with MPs ahead of his Budget address in about 30 minutes.

11.30am

Chancellor Rishi Sunak told Cabinet ministers the “three building blocks” of the Budget were “strong public services, infrastructure innovation and skills”.

A Downing Street spokesman said the Chancellor also pledged to use post-Brexit freedoms to deviate from EU rules to “deliver substantive reform of our tax system”.

The spokesman said: “The Chancellor outlined his plans for the Budget and Spending Review that will deliver a stronger economy for the British people, promoting high skills, high productivity and higher wages.

“He also set out how strong public services, infrastructure innovation and skills, and support for working families were the three building blocks of this Budget, emphasising that there would be strong investment in all three including £6 billion to help clear NHS backlogs and £3 billion investment in skills.”

11.10am

The Chief Secretary to the Treasury has announced he will not feature in the traditional pre-Budget photograph with the Chancellor as he is agoraphobic.

Simon Clarke tweeted that his condition “prevents me being comfortable in some open spaces” and so as a result would not take part in the shots outside No 11 Downing Street.

The Treasury ministerial team is ritually photographed together outside the famous black door while the Chancellor holds up their Budget red box before the Commons fiscal speech.

11am

Rishi Sunak is expected to hail a “new age of optimism” in his Budget on Wednesday afternoon amid predictions he will have more money than expected to spend due to a fast bounce-back from the Covid-19 pandemic.

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