Philip Hammond will wipe more than £60billion of housing association debt from the Government's balance sheet in a move that will boost housebuilding ahead of his Budget.

The Chancellor yesterday warned that there is "no silver bullet" to fixing the housing crisis as he appeared to strike a significantly more downbeat tone than Theresa May.

However ministers have announced that housing association debt, which was transferred onto the Treasury's books in 2015, will now be reclassified and wiped from the national debt.

The debt will be transferred back to Housing Associations, giving them greater control over their own finances and enabling them to build more homes. It is also likely to give Mr Hammond more room for manouver in his Budget.