Improvements in tax collection would yield an extra 820 million pounds, said Hammond, including a tax on roaming telecom charges outside the European Union (EU) and, from July, a new financial penalty from professionals who use tax avoidance arrangements which are later unravelled by the government tax inspectors.

Hammond also announced that he would provide financial support to small businesses, setting aside 300 million pounds to help with business rates, and supporting 90 percent of pubs with a 1000 pound payment to help with rates.

Hammond's predecessor as chancellor George Osborne had launched the Northern Powerhouse, an initiative to rebuild the cities of northern England, and Hammond in his budget announced that he would launch a Midlands Engine Strategy, to support growth and development in the English midland cities, but further details were not announced.

Hammond said the government put increasing productivity "at the very heart of its economic plan" and put investment funding aside for research in science and technology.

This is Hammond's first and last spring budget. From now on, there will be one budget each year instead of the budget and autumn financial statement which has been the norm for some years. The next budget will be in the autumn.

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