Philip Hammond admits Brexit vote means £122bn extra borrowing

Labour describes long-term economic plan as an abject failure after chancellor uses autumn statement to defer the balancing of the books

Philip Hammond has admitted that the Brexit vote's blow to the economy would force the government to borrow 122bn more than hoped as he pushed back government plans to balance the books in his autumn statement.

In the government's first major economic announcement since the vote in June to leave the EU, the new chancellor said the economy was faring well in the wake of the referendum result but growth would slow markedly next year on the back of weaker business spending and a squeeze on household budgets from rising living costs.

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