The United Kingdom will have to pay a £37.1 billion financial settlement to leave the EU - and the payments will continue until 2064.

The size of the divorce bill was revealed in papers published by the Office for Budget Responsibility (OBR) to accompany Chancellor Philip Hammond's Spring Statement.

The OBR is the UK Government’s official independent budget watchdog.

It expects that £16.4 billion will be paid by the end of 2020, with another £18.2 billion paid by the end of 2028.

The remaining £2.5 billion represents pension liabilities, and will continue to be paid for decades to come.

Mr Hammond said austerity could come to an end in the Autumn - but there are no promises.

Delivering his Spring financial statement to the House of Commons, he said the Government’s official forecaster has upgraded projections for growth and predicted falling inflation, debt and borrowing.

And this meant he might have more money to spend when he delivers his full Budget statement in the Autumn, he said.

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The Chancellor told MPs: “If, in the autumn, the public finances continue to reflect the improvements that today’s report hints at, then ... I would have capacity to enable further increases in public spending and investment in the years ahead, while continuing to drive value for money to ensure that not a single penny of precious taxpayers’ money is wasted.”

It could mean an end or at least a softening of the spending cuts that have hit police forces and councils.

But Treasury officials insisted no decisions had been made so far.

Mr Hammond revealed that the Office for Budget Responsibility now expects state borrowing to be £45.2 billion this year - some £4.7 billion lower than predicted in November and £108 billion lower than in 2010.