TORY Chancellor Philip Hammond ditched predecessor George Osborne’s promise to attain a budget surplus by 2019-20 and claimed to be ready to invest in infrastructure and skills to raise productivity.

Mr Hammond acknowledged that the vote to leave the European Union showed “that large parts of our country feel left behind” and that “a dangerous divide is opening up between those who believe they have a stake in the success of our economy and those who do not.”

The Chancellor promised that the government would guarantee to continue payments of multi-year EU grants secured before Britain quits the bloc.