The surprise cut, bigger than expected, was part of a raft of tax cuts designed to stimulate growth.

The Chancellor called his speech in the Commons today: “An Autumn Statement for Growth.”

Among the other key measures were significant changes to pensions with a new ‘pension pot for life’ plan announced, increases in the State Pension of 8.5% and cuts to business taxes and National Insurance.

Key changes included:

• A cut in Employees’ NI from 12% to 10% - saving employees’ earning £35,000 a year £450

• Class 2 National Insurance contributions to be abolished, helping the self employed, with Class 4 contributions cut too

• A new 'Pension Pot for Life' - new plan to allow employees to take their workplace pension from job to job

• An increase to the State Pension of 8.5% - with the Triple Lock applied in full

• A 6.7% rise in benefits

• For businesses ‘full capital expensing’ will be made permanent, allowing firms to offset Corporation Tax when they invest

• A rise in the National Living Wage by about 10% to £11.44 from April

• Duty on alcohol frozen until August but a rise in tobacco duty

Mr Hunt said his Autumn Statement would provide one of the “biggest business tax cuts in history.”

He also announced rules to loosen planning restrictions, encourage apprenticeships and boost regional freeports and business enterprise zones.

Despite speculation there was no mention of any change to Inheritance Tax.