Mr Javid promised he was “turning the page on austerity” with funding settlements at least in line with inflation across Whitehall. The Treasury “won’t be writing blank cheques” but key areas will be given significant injections of cash, he said. NHS funding will be given a major boost and the Home Office budget will rise by 6.3 per cent in real-terms, which will partly fund a huge police recruitment drive. The one year spending review was fast-tracked to “clear the decks” before Brexit. In his statement, Mr Javid told MPs: “We are turning the page on austerity and beginning a new decade of renewal.

“A new economic era needs a new economic plan and today we lay the foundations with the fastest increase in day-to-day spending in 15 years.”

Overall, government departments will get a £13.8 billion real terms increase in day-to-day spending for 2020/21.

It includes an extra £2 billion to help deliver a smooth exit by increasing the number of Border Force staff, improve infrastructure at our ports and help support businesses. 

An additional £1 billion grant will be used to ease strains on social care services.

But council taxpayers face a two per cent on their bills to fund a further £500 million for system.

The combined £1.5 billion comes on top of an existing £2.5bn of social care grants that are a “down payment on the more fundamental reforms” Prime Minister Boris Johnson plans to announce next year.

James Jamieson, chairman of the Local Government Association, said: “We are delighted that today’s spending round has delivered a funding package of more than £3.5 billion for our vital local services next year.

“This is the biggest year-on-year real terms increase in spending power for local government in a decade and will allow councils to meet the rising cost and demand pressures they face in 2020/21.”

Mr Javid also confirmed plans announced by the Prime Minister last month for an extra £1.8 billion for the NHS.

The Chancellor announced the biggest increase in day-to-day funding for the Home Office in 15 years to help ease pressure on “overstretched” police forces as they deal with the increased terror threat, cyber crime and the wave of “horrifying” stabbings on Britain’s streets.

It includes £750 million to fund the first year of plans to recruit 20,000 new police officers, with £45 million to start an immediate recruitment push to put 2,000 officers in place by March.

An extra £80 million will go to the Crown Prosecution Service as part of plans to “dramatically improve” the criminal justice system.

Mr Javid said the probation system will be reformed, security increased in jails and thousands of new prison places created under a five per cent real terms increase for the Ministry of Justice.

The Chancellor pledged to “put the wheels back on the Great British bus” with a funding boost worth more than £200 million.

He said the money will go towards investment in ultra low emission vehicles and trials of on-demand services “to respond to passenger needs in real time”.

An extra £2.2 billion has been allocated to the Ministry of Defence and £7 million will also go to the Normandy Memorial Trust to complete its memorial overlooking Gold beach.

“This year is the 75th anniversary of the D-day landings,” Mr Javid said. “We pay tribute to the sacrifices of the extraordinary generation of British soldiers who fought and died during that campaign.”

The spending round also included £700 million to support children and young people with special educational needs and an extra £54 million to tackle homelessness.

Around £90 million for 1,000 diplomats and overseas staff and upgraded missions to help “seize the opportunities of Brexit” around the world.

Mr Javid said he was sticking to the Government’s target of keeping borrowing below two per cent of GDP in 2020/21.

But aides admitted the spending plans are not based on fresh economic forecasts so the amount of “fiscal headroom” available may change.

Treasury officials insisted money will be “made available” if the figures change and Mr Javid told MPs the fiscal rules will be reviewed at the Budget later this year “to ensure it meets the economic priorities of today, not of a decade ago”.

He added: “We won’t be able to afford everything and we’ll need to prioritise investment in policies that deliver real productivity gains and boost economic growth in the long-term,” he said.

“We’ll still need to make difficult choices about our national priorities within a clear set of rules to anchor our fiscal policy and keep control of our national debt.”

The Institute for Fiscal Studies said the increased spending meant it would be “touch and go” whether Mr Javid met the borrowing rules.

Ben Zaranko, research economist at IFS, said: “The Chancellor confirmed today a 4.1 per cent real increase in day-to-day public service spending next year, with no department facing a real cut to its budget.”

John O’Connell, chief executive of the TaxPayers’ Alliance, said: “These spending plans make it crystal clear that politicians are getting into election mode. More cash for cops, prison places and schools spending will prove popular with taxpayers who want a boost for frontline services.

“But spraying taxpayers’ money across every part of Whitehall signals a single-year ceasefire in the all-important war on waste.”

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