Budget 2018: Chancellor does the minimum to avoid austerity deepening, but this was no windfall budget to undo the hurt

By the end of the next five year period, the government will be spending £30 billion more a year - the largest rise in public spending since 2010. That's the headline that the government will want to see rolling out.

But that is only the surface appearance. The reality is - as Institute of Fiscal Studies Director Paul Johnson said - £30 billion was the minimum to stave off deeper cuts. And the benefit of that spending goes squarely to the NHS.

While no one is going to dispute the NHS feeling the benefit of increased public spending, in this budget the increased spending on healthcare disguises the reality underneath of public spending stagnating - the cuts of the past decade are not being undone and departments may face more cuts ahead.

Measures in this budget were plentiful, but it was money spread thin. Just £800 million for local government, £1.0bn for Defence, £160 million for counter-terrorism policing, £400 million one-off emergency fund for schools, £420 million for highway repairs.

There was a range of handwaved increases for tech and infrastructure to the tune of £1.6bn plus. A mixed bag of measures for apprenticeships worth £650 million. A package of complex investment incentives made up of reliefs and loans.

A 'co-funded' £650 million to renovate high streets. The headline Business Rates cut (said to cost £900 million) - a policy where it is still unclear who will bear the burden, the Treasury or local councils, as the Chancellor has already announced the intention to let councils keep larger percentages of the rates. There was a few hundred million to speed up housing developments and around £4bn for the city regions and the devolved administrations.

For households, there was a £200 million a year increase to 'transition support' for those moving over to Universal Credit and the work allowances were to be relaxed to, at a cost of £1.7bn, to mitigate the impact of the new welfare system on the poorest for which the government had been criticised - but only once the roll out is completed, which could be deferred for a long time at this rate.

There is also the cost to be calculated of tax cuts, including the freezes to a series of duties and the further increase in the personal income tax thresholds - up to £12,500 for earnings before tax applies and a higher rate threshold increased to £50,000.

In total, there was about £7bn spread over the next few years, plus the cost of tax cuts, with perhaps less than £4bn in new one-off spending - and a little under £2bn deferred until the rollout of Universal Credit has been completed. It appears the NHS will get an amount reaching more than £20bn a year by 2023.

The economic forecasts, and tax receipts, gave the Philip Hammond what he wanted: the ability to achieve a surplus and completely wipe out the deficit, so the debt could begin to come down at a faster rate. However, the needs of the NHS in crisis seem to have pressed the Chancellor to action.

Otherwise, Hammond stayed true to form. He preferred to use his room for new measures on tax cuts - to 'keep money in pockets' - than funding public services in plight. In fact, to keep in track, how the Chancellor used his headroom means that there will probably be more department funding cuts to come.

Austerity is not over. At best, the Chancellor Philip Hammond has stumped up the bare minimum cash to stop austerity further deepening. Even then it is a temporary measure, as the Spending Review he announced for next year will likely reveal that there are still more cuts to come.

Chancellor Hammond begins constructing the Tories framing for their budget

Chancellor Philip Hammond took to the stage at the Conservative Party conference to tell his party that they had to make the case of capitalism - and must first and foremost always be the party of business.

On the one hand, this was the latest barrage in a war of words within the Conservative ranks - torn by Brexit and the deep reservations of the business community. On the other, it's also laying the groundwork for the budget.

Hammond told the conference that the party couldn't afford to be seen as the party of the status quo. The Chancellor trailed the possibility of some tax rises to increase spending, but warned against trying to match Labour penny-for-penny.

We've heard this before.

The budget is coming up and the party delivering it are positioning their pitch, delivering up framing devices for the media to use in the coming weeks. For the Tories, they cannot afford to lose control of the message.

In recent months, even senior ministers have been defying the government with a whole barrage of comments to the media. It's making PMQs a whole lot easier for Corbyn and forcing No 10 and No 11 to waste their time running around putting out fires.

For instance, when the Confederation of British Industry (CBI) felt the need to express it's dismay about Brexit - and the danger of leaving the EU without a deal - a former government Brexit minister labelled them a 'grave menace' to the UK's prospects.

That's not a good look for a party that sees itself as the true representative of business. No wonder the Chancellor is calling for the party to get back on message. But there's more.

The Chancellor is also dropping little hints that there might be some tax rises - though these aren't yet more than hints - with an eye to some slight increases in spending.

Hammond finally loosened some of the purse strings this year, with a slight relaxing of public sector pay restrictions. But they were only very slightly relaxed and spending measures in the last budget were far below the kind of intervention for which the UK economy is crying out.

The consensus on the economy - and on Brexit - seems to be moving away from the Conservatives. Conceding the possibility of a spending increase lays the groundwork for framing the measures Hammond will announce on budget day.

In previous budgets, Hammond has talked up restricted spending and paying down the deficit only to deliver up, at times uncosted, spending increases - even if only small ones. The order of the day was austerity, but spending was needed.

Now, the consensus is shifting towards much larger public investment than Conservatives are prepared to meet. And so the Chancellor is preparing the ground to present the next budget as one that will deliver responsible spending.

Yet behind the narrative, there is little reason to expect anything but more of the same from the Treasury. Brexit is a hinderance and while the deficit has been reined in, the debt has ballooned under the Conservatives.

And who is going to be happy with Tories raising taxes? The last time Hammond tried to make a major tax adjustment, he had to withdraw his self-employed National Insurance fix within a week of presenting it.

In politics, the next best thing to delivering policies in line with the consensus is to get every believing that you're doing just that - without having to go to the trouble of spending the money. Expect this narrative to build through October.