The chancellor Philip Hammond slashed the UK’s growth forecast for this year, as he warned MPs his pledge to end austerity would be in tatters if they continue to block a Brexit deal.

Delivering a low-key Spring Statement, Mr Hammond sought to emphasise the message that more cash for public services and tax cuts would flow only if a no-deal Brexit was avoided.

Promising a “deal dividend”, he told the Commons: “The progress that we have made will be at risk if we can’t secure a smooth and orderly exit.”

Mr Hammond announced that borrowing would be £3bn lower than he predicted in the autumn, as the public finances improved, and that the economy was forecast to grow in each of the next five years.

The 1.2 per cent growth in 2019 would be “faster than Germany” – but it is a significant downgrade on the 1.6 per cent set out in last October’s Budget.

Tariffs in the event of a no-deal Brexit Show all 15 1 /15 Tariffs in the event of a no-deal Brexit Tariffs in the event of a no-deal Brexit Pork There will be tariffs on pork in order to protect British farmers Getty Tariffs in the event of a no-deal Brexit Cheese There will be tariffs in place on some cheeses including €22.10/100kg of cheddar, €19.10/100kg of processed cheese and €18.60/100kg on some blue cheeses Getty Tariffs in the event of a no-deal Brexit Milk There will be no tariffs in place on milk Getty Tariffs in the event of a no-deal Brexit Car Parts There will be no tariffs on car parts imported from Europe PA Tariffs in the event of a no-deal Brexit Cars However finished cars will face tariffs of 10.6% Getty Tariffs in the event of a no-deal Brexit Alcoholic drinks There will be no tariffs on alcoholic drinks - except on some rums due to ingredients used in their distilling process Getty Tariffs in the event of a no-deal Brexit Beef There will be tariffs on beef in order to protect British farmers Getty Tariffs in the event of a no-deal Brexit Fish There will be no tariffs on many types of fish including cod, haddock, salmon and sea bass Getty Tariffs in the event of a no-deal Brexit Fruit and vegetables There will be no tariffs on almost all fruit and vegetables Getty Tariffs in the event of a no-deal Brexit Chocolate There will be no tariffs on chocolate or other cocoa products Getty Tariffs in the event of a no-deal Brexit Poultry There will be tariffs on poultry in order to protect British farmers Getty Tariffs in the event of a no-deal Brexit Ceramics There will be some tariffs in place on ceramis Getty Tariffs in the event of a no-deal Brexit Steel There will be no tariffs on steel Getty Tariffs in the event of a no-deal Brexit Coal There will be no tariffs on coal Getty Tariffs in the event of a no-deal Brexit Lamb/Mutton There will be tariffs on the meat of sheep in order to protect British farmers Getty

There was no mention of the punishing benefits freeze, suggesting Mr Hammond had ignored cross-party pleas to axe it before its planned expiry in 2020.

In two eye-catching announcements, the chancellor pledged free sanitary products for girls in secondary schools and colleges and £100m for extra police overtime to tackle the “epidemic” of knife crime

He confirmed “a full three-year spending review before the summer recess”, to be concluded in the autumn, despite the huge uncertainty surrounding the damage from Brexit.

Mr Hammond also diverted from Theresa May’s script by urging MPs to vote later to “remove the threat” of a crash-out Brexit and back an Article 50 extension – arguing it would help MPs to agree a “compromise” deal.

Speaking in the Commons, he insisted there was “good news” on the economy, with borrowing this year at 1.1 per cent of GDP and forecast to reach £13.5bn in 2023-24, its lowest level in 22 years.

He dangled the carrot of more money for “public services, capital investment and keeping taxes low” in the spending review to follow.

But he warned: “Leaving with no deal would mean significant disruption in the short and medium term and a smaller, less prosperous economy in the long term than if we leave with a deal.

“Higher unemployment; lower wages; higher prices in the shops. That is not what the British people voted for in June 2016.”

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John McDonnell, the shadow chancellor, accused Mr Hammond of a “toxic mix of callous, brutal complacency over austerity and its grotesque incompetence over the handling of Brexit”.

“Teachers are having to pay for the materials their pupils need, working parents are struggling to manage as schools close early and their children are sent home.

“Five-thousand of our fellow citizens will be sleeping in the cold and wet on our streets tonight. Young people being stabbed to death in rising numbers.

“And, the chancellor turns up today to threaten us that austerity can only end if we accept a bad Brexit deal.”

Mr Hammond also announced:

* A £3bn affordable homes guarantee scheme, to support delivery of around 30,000 homes.