No-frills Hammond breaks from Osborne with new fiscal rules and Spring Statement

Philip Hammond set a no-frills tone as he made a swift exit from Number 11 and jumped into his ministerial car before he unveiled the Autumn Statement on Wednesday (23 November).

It was a sign of things to come as the Chancellor abandoned the pomp and circumstance of photo-friendly George Osborne, who sat by Ken Clarke as Hammond took to the dispatch box.

The former chancellors had plenty to chat about after Hammond's 54-minute-long speech, which saw Theresa May's man in Number 11 abandon Osborne's budget surplus and abolish the Autumn Statement.

Hammond joked early on that he was no better at pulling rabbits from hats, a policy manoeuvre Osborne became known for, than Boris Johnson is at retrieving the ball from the back of rugby scrums, a quip the foreign secretary famously made about becoming prime minister.

But tributes aside, Hammond signalled that he would not continue his predecessor's legacy in the Treasury. "We no longer seek to deliver a budget surplus in 2019/20," he told the Commons.

The move, part of a plan to make the "economy work for everybody", was in reaction to the Office for Budget Responsibility's (OBR) forecast that the UK's GDP growth would hit 2.1% in 2016 and drop to 1.4% in 2017.

Hammond unveiled three new fiscal responsibility rules, including to achieve a budget surplus in the next parliament and to get net debt dropping by 2020.

"[The government] remains firmly committed to seeing the public finances return to balance as soon as possible in the next parliament," he said.

Hammond adopted a serious and sombre tone throughout with an occasional quip to lighten the mood. The Chancellor also broke with Osborne over slogan usage.

There was little mention of a "long term economic plan", but the "Northern Powerhouse" and the "Midlands Engine" did make brief appearances.

Productivity was a major theme of Hammond's speech, with the announcement of a £23bn National Productivity Investment Fund.

"Raising productivity is essential for the high-wage, high skill economy that will deliver higher living standards for working people," he said.

Hammond also said he had "deliberately avoided" a long list of infrastructure projects in another departure from Osborne, who laughed at the jibe. There was, of course, a pro-business section in the Chancellor's address.

Hammond confirmed that corporation tax would fall from 20% to 17% by 2020, while the National Living Wage would raise by 4% or 30p to £7.50 an hour for the over 25s. All part of May's "economy for everyone" mantra.

The Chancellor's major tease came near the end of the statement. "This is my first Autumn Statement and it will also be my last..." he told MPs.

Could the claims about Hammond's tensions with cabinet ministers be true? Was he going to quit already?

No. The top Tory announced the end of the Autumn Statement, which will be replaced by a Spring Statement from 2018. The overall message from Hammond was clear: I'm no magician and I'm not George Osborne.