The Budget has marked a "philosophical shift" in Conservatism, the Chief Secretary to the Treasury has said, after Rishi Sunak opened the doors to taxes and spending rising to the highest level since the 1950s.

       Yesterday the Chancellor told MPs that there should be "limits" to the Government - but went on to confirm a real-term rise in spend for every government department, worth ￡150bn over three years.

       He later told a meeting of backbench Conservative MPs that "in the future every marginal pound should be put into lowering taxes", and this morning told Sky News: "My ambition is to lower taxes, that is what I would like to do as Chancellor... and I was delighted to start that yesterday."

       However Simon Clarke, his junior minister, told BBC Newsnight: "The Chancellor was very open about the fact that this is something of a philosophical shift.

       "What we want to see is to get the economy turbocharged, unlock productivity, and to deliver growth more evenly across the UK. That does require some upfront spending."

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       The Institute for Fiscal Studies is due to deliver its full verdict on the Chancellor's Budget shortly, with wonks at the think tank arguably the best at clearing away the smoke and mirrors to analyse what is actually being changed.

       But your Telegraph team has also been hard at work looking at what Rishi Sunak's announcements mean for you and your money.

       Take a look here to find out if you're one of the Budget's winners or losers - or use the tool below to see how you fare.

       A threat by France to block British boats from its ports appeared to breach international law, the UK has said, vowing to retaliate if Paris goes ahead with the move.

       Yesterday France issued a list of sanctions that could take effect from Nov 2 unless there is sufficient progress in the fishing row, saying it was working on a second round that could affect power supplies to its neighbour.

       "France's threats are disappointing and disproportionate, and not what we would expect from a close ally and partner," a Government spokesman said

       They added that the measures "do not appear to be compatible" with the UK-EU Brexit withdrawal agreement "and wider international law, and, if carried through, will be met with an appropriate and calibrated response."

       Read more here

       Sir Lindsay Hoyle, the Speaker, has granted an urgent question in the Commons on the fishing dispute.

       It will be asked by the SNP's environment, food and rural affairs spokeswoman, Deidre Brock, and is expected from 10.30am.

       See 9:23am and 8:52am for more

       Downing Street has said it is "urgently" investigation the situation after France seized a British trawler that was found fishing in its territorial waters without a licence overnight.

       A UK Government spokesperson said: “We are aware of reports of enforcement activity being undertaken by the French authorities and are looking into the matter urgently.”

       See 8:52am for more

       Rachel Reeves has joked that Sir Keir Starmer dropping out of the Budget last-minute is the sort of thing "you wake up in a cold sweat in the middle of the night over".

       The shadow chancellor told Sky NEws: "At about 11:45 - 45 minute before the Budget began - I was told that Keir had tested positive for Covid. I mean, what a nightmare!

       "I had 45 minutes to prepare my speech. My background is as an economist, and I think I put it to good use in getting on top of the issues, and then listening to the Chancellor's speech and trying to respond to that as quickly as best I could."

       She added; "It's the sort of thing you wake up in a cold sweat in the middle of the night over - but luckily I didn't have all that much time to worry about it,"

       Rishi Sunak has refused to commit to cutting income tax before the next General Election, which will be 2024 at the latest.

       The Chancellor last night was challenged by Tory backbenchers of the 1922 committee, amid concerns that the rises to National Insurance and elsewhere will cost votes.

       But this morning he insisted he had already "started cutting taxes yesterday, our priority being those on the lowest incomes" by reducing the taper rate for those on Universal Credit.

       Pressed on whether there would be income tax cuts before the next election, the Chancellor replied: "No, no - let's talk about this Budget rather than all the other ones."

       Rishi Sunak has defended his decision to cut air passenger duty for domestic flights in his Budget, amid criticism that it runs counter to the aims of Cop26.

       The Chancellor told BBC Breakfast: "What we're doing here is returning to a system we used to have before we had to get rid of it, which was not paying air passenger duty on both of the legs of a journey that you took within the United Kingdom.

       "Of course, it is right that we are consistent with our environmental goals... so, yes, we're doing this to support domestic aviation, and regional airports will benefit from this, but we are also introducing a brand new band for ultra long-haul travel," he added.

       "Actually, yesterday the independent watchdog said that our plans in the round will reduce carbon emission and move us further along the path to net zero."

       It's not just the Budget that is dominating the news today, after France seized a British trawler fishing in its territorial waters without a licence overnight.

       Amid the ongoing row over access to fishing grounds after Brexit, Paris said yesterday it would launch further retaliatory measures if there was no progress in talks, including extra customs checks on British goods entering France, sanctions and restrictions on electricity exports.

       "It's not war, but it is a fight," France's seas minister Annick Girardin told RTL radio.

       Clement Beaune, the outspoken European affairs minister said France would now use "the language of force, because, unfortunately, this British government understands only that".

       There has been no response from No 10 so far.

       New fiscal rules laid out in the Budget will help guard against the impact of higher inflation, Rishi Sunak has argued.

       Speaking to BBC Breakfast, Mr Sunak said: "Of course inflation and interest rates are things that in my job as Chancellor I have to look at and be concerned about.

       "Crucially, my job is to protect the country the best I can for those risks, for those challenges.

       "That's why it is important we have strong public finances and yesterday we set out some new rules for borrowing and debt to get them back in a better place.

       "That's how we build up resilience against things like that, protect people and the economy through tough times if they come along."

       Rishi Sunak's decision to cut air passenger duty ahead of the Cop26 climate summit is "astonishing", Rachel Reeves has said.

       "We wouldn't have gone ahead with that cut," the shadow chancellor told BBC Radio 4's Today programme.

       "I find it astonishing that, the week before Cop26, where we are supposed to be showing global leadership, we have cut air passenger duty on domestic flights.

       "We should be encouraging people to use our train network for those journeys."

       Rishi Sunak has tried to downplay suggestions that Brexit is dragging the economy down, after the chairman of the Office for Budget Responsibility said it was having double the impact of Covid.

       Richard Hughes said leaving the EU would reduce the UK's potential GDP by about four per cent in the long term, while forecasts showed the pandemic would reduce GDP "by a further two per cent".

       The Chancellor told BBC Radio 4's Today programme he did not want to get into something that happened "five years ago", adding: "That's their view. What I am doing is making sure we are capitalising on the opportunities that Brexit has brought...

       "The ability to sign trade deals around the country, creating freeports [to] drive growth and create jobs, and yesterday I was able to reform some of our taxes in a way we couldn't before."

       Rishi Sunak has defended his decision to "deliberately" increase the country's tax burden in yesterday's Budget.

       The Chancellor told BBC Radio 4's Today programme: "We had to do taxes to do two things - one is to deal with the damage coronavirus has done to our economy, to get our borrowing and debt back under control.

       "But also to fund the Prime Minister's reform to social care and help the NHS recover... that is what people would expect us to do and that is the right thing to do."

       He noted that some spending would be covered by an increase in economic growth, but added: "In general you do have to pay for the things you are spending money on and we outlined an ambitions programme of investment in public services, infrastructure and skills and yesterday's Spending Review and Budget delivered on that.

       "The people's priority now is to see that public services recover after coronavirus... we know the only way to pay for spending is higher economic growth. We get through through doing things like investing in things like innovation."

       Rishi Sunak has insisted the reduction in the Universal Credit taper rate is distinct from the end to the ￡20-a-week uplift.

       The Chancellor told BBC Radio 4's Today programme: "The taper rate is a tax rate on work and it has been been pointed out by many that it is a high tax rate, which serves as a disincentive."

       But challenged about the fact that the change comes after the end of the ￡1,000-a-year uplift, he stressed they were "two very different things".

       He added: "We are trying to talk about things we did during the crisis - whether it's that (uplift) or furlough, those things have naturally, rightly come to an end.

       "What the taper rate does - it's a tax rate and a high tax rate, many people have pointed out that it serves as a disincentive for work."

       He also stressed that it was a tax cut, rather than a benefit change.

       Is Rishi Sunak feeling a bit burnt out after his hectic Budget schedule?

       The Chancellor appeared to mix up the name of the Greater Manchester town he was conducting his broadcast interviews in, referring to Bury market as the "world famous Burnley market".

       Answering a question about the Government's levelling-up agenda, Mr Sunak said: "It is not just about being in the North by the way, we're here in Burnley but if you are growing up in a village in the South West or even on the South Coast, people want to feel opportunity is there for them, wherever they happen to be.

       "I put it down to two things. One is having pride in the place you call home and a lot of what we announced yesterday, the levelling-up fund - bids like Burnley market, world famous Burnley market, benefiting from ￡20 million of investment.

       "That's going to create jobs. It is about improving the every day infrastructure of our communities."

       Burnley is 20 miles north of Bury.

       Could Rishi Sunak soon be giving Boris Johnson a run for his money?

       The Chancellor has said his dog Nova will "start needing runs soon, so you might see me out and about".

       He added: "I am looking forward to spending a bit more time with her now that i have got this budget out of the way."

       The Prime Minister can often be seen going out for a morning jog with his dog Dilyn - could Rishi and Nova join them?

       Rishi Sunak defended his decision to cut the "unfair and silly" duty on champagne, after Labour criticised the move yesterday.

       Rachel Reeves, the shadow chancellor, claimed that only "bankers on short-haul flights sipping champagne will be cheering" the Budget.

       Asked about her comments, the Chancellor told Sky News: "I am not going to make any apologies for that, we have an irrational system.

       "It is going to be simpler, healthier... I know many people who enjoy a bottle of sparkling wine... The price of those bottles will come down by about 87p."

       It was a "completely irrational duty premium - they are no more alcoholic than still wine," he added.

       Rishi Sunak has said it would be "irresponsible" to suggest he could tackle inflationary issues, amid fears that rising prices could spiral.

       Speaking the day after delivering the Budget, the Chancellor stressed that the main causes were global supply chains and the wholesale cost of energy - issues he has no control over.

       But he insisted that things like freezing fuel duty and raising the national living wage would help people navigate the cost of living crisis.

       "Inflation is one of the challenges I have to grapple with.. [but] there are lots of things we are doing that will help people keep more of their money ," he told Sky News.

       Rishi Sunak has insisted it is his "ambition" to lower taxes before the next election, as spending reaches levels not seen for a generation.

       Speaking on the morning after delivering his Budget he told Sky News: "My ambition is to lower taxes, that is what I would like to do as Chancellor... and I was delighted to start that yesterday."

       But quizzed about whether that would include income tax, he declined to comment.

       With the Universal Credit taper cut, he had "yesterday cut taxes for two million of the lowest paid people in the country".

       Rishi Sunak on Wednesday announced plans for Government spending at levels not seen since the late 1970s as he declared that the Conservatives were now the "real party of public services".

       The Chancellor used improved economic figures to increase spending in every government department in a ￡150 billion spree that moved the Tories into traditional Labour territory.

       He announced beer duty cuts and business rates relief to help firms hit by the Covid pandemic, while tweaking Universal Credit, increasing the minimum wage and scrapping a fuel duty rise to help people with the cost of living crunch.

       Mr Sunak used his Budget speech to say it was time to start preparing for a "post-Covid" future and vow to build an "economy fit for a new age of optimism", with higher wages and higher skills.

       Are the corks popping in Downing Street - or has the Budget left Westminster with a hangover?

       Rishi Sunak's work didn't end at the dispatch box, with the Chancellor speaking to Tory backbenchers and the media to defend some of his measures.

       That continues this morning - and we will hear from the Institute for Fiscal Studies to see what they make of it all.

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