The Chancellor was forced to reveal that the Office for Budget Responsibility has downgraded major economic forecasts for the UK economy.

The OBR has revised down the outlook for productivity growth, business investment, and GDP growth across the forecast period.

The OBR now expects to see GDP grow 1.5% in 2017, 1.4% in 2018, 1.3% in both 2019 and 2020, before picking back up to 1.5%, and finally 1.6% in 2022.

Michael Metcalfe, global head of macro strategy for at State Street Global Markets, said: “The government has committed funds to help with the preparation for Brexit contingency planning, but the real challenge for UK markets revealed in the budget came from the Office for Budget Responsibility (OBR) and the significant downgrades to the UK growth outlook.

“Still high inflation and an expected weakening in growth provide a potentially troubling backdrop for markets even without the political uncertainties created by Brexit.”