Philip Hammond has used the early stages of his Budget speech to pledge that £3 billion will be set aside for "every possible outcome" regarding Brexit.
The Chancellor said that the Government would make progress on achieving a Brexit implementation agreement "a top priority in the weeks ahead".
The Chancellor said he is setting aside £3bn over the next two years for Brexit preparations and stands ready to allocate further sums if and when needed.
The Budget takes "a balanced approach .... maintaining fiscal responsibility, as we at last see our debt peaking [while] continuing to invest in the skills and infrastructure that will support the jobs of the future," said Hammond.
He also said the Government would legislate to stop the VAT current paid by Scottish police and fire service north of the Border, saying he has "had his ear bent" on the issue by his 13 Scottish Tory colleagues.
He refused to refund the VAT already paid however, saying the SNP "knew the consequences" when they "pressed ahead regardless" to introduced these bodies.
First Minister Nicola Sturgeon welcomed the news that the emergency services would no longer have to pay VAT – but stressed the Tory government must refund earlier payments to the two forces.
The services became subject to the levy when they were formed in 2013, when ministers at Holyrood merged regional forces together to create the two new national bodies.
The SNP leader said: "It's long overdue and it's an absolute disgrace that it has taken the UK Government so many years to do the right thing here.
"Police Scotland and the fire service in Scotland should never have been paying VAT and they are the only emergency services in the UK that do so."
Sturgeon said the Chancellor should confirm the services will no longer have to pay the levy and called for the backdated amount to be refunded.
"I am hopeful we will get both of those commitments today, because both of them are essential," she said.
More to follow ...
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