Philip Hammond’s U-turn to scrap a planned hike in taxes on the self-employed will leave a £2bn hole in the public finances over the next five years.

He promised to “fund all additional spending decisions” instead of borrowing more, so he will need to raise an alternative tax or cut spending if he wants to stick to that pledge.

But Mr Hammond has told MPs they will have to wait until the autumn Budget to find out exactly how he will fill the gap.