Philip Hammond has reiterated Theresa May's claim that the era of austerity is "finally coming to an end" in his last pre-Brexit Budget.
The chancellor unveiled a new "UK digital services tax" aimed at tech giants, which are profitable and generate at least £500m a year in global revenues.
Promising a Budget for "Britain's future", Mr Hammond also earmarked an extra £1bn for the Ministry of Defence and set out the government's plan for the NHS, including £2bn per year for mental health services.
In addition, he said the government would never sign another private finance initiative (PFI) deal, long criticised for locking the taxpayer into hugely expensive infrastructure contracts that enrich private firms.
He also promised an additional £1bn for the implementation of universal credit, which also faces widespread criticism for pushing vulnerable people into homelessness and food bank dependency.
See below for live updates
In response to the suggestion that sounded like a leadership manifesto, she said: "Things need to change, don't they, and I think people need to have some hope for the future, that Britain can be a country that runs differently and more fairly than it does at the moment."
Asked if she would run if there was a vacancy, the Putney MP said: "I might be prepared to, but I'm more interested in the Conservative Party actually showing what it can do for this country.
"Yes, we spent a lot of time having to fix the nation's finances but what we now need to do is discover - maybe rediscover - our own mission, which has got to be about how we make sure that young people growing up everywhere in this county have the same access to opportunity and it shouldn't matter whether they have got parents who are maybe middle class, a bit more sharp-elbowed.
"Talent is spread evenly. The challenge of Britain is that opportunity isn't. That's what we have got to fix."
Green campaigners have lined up to attack chancellor Philip Hammond for announcing a multi-billion-pound boost for building and upgrading roads – days after world scientists urgently warned that greenhouse gas emissions must be cut.
In today's Budget, Mr Hammond is due to champion £30bn of funding for new roads and road repairs, hailing it “the biggest-ever cash injection for England’s largest roads”.
More here:
A European Commission spokeswoman said: "We have no current plans to do anything of the sort."
Ahead of the Budget this afternoon, Downing Street has insisted all the spending commitments to be announced are “funded irrespective of a Brexit deal”.
The comments follow the chancellor’s warning that he will have to review spending if the UK crashes out of the EU without a deal – and hold an emergency Budget next year.
There has been tension between No 10 and Philip Hammond about whether the prime minister’s pledge to end austerity depends on getting a Brexit deal – with a more-cautious Treasury hinting it does.
Theresa May’s spokesman denied there was a disagreement, saying: “All of the spending commitments that the chancellor will set out today are funded, irrespective of a deal.”
However, the key point is that the prime minister has not promised that austerity will end with today’s Budget, pointing instead to a “long-term approach” in next summer’s spending review.
Labour is certain to leap on the fact that cuts pencilled in for the next financial year – to councils and benefit claimants, amongst others – will continue until at least 2020, without action today.
No 10 did agree with Mr Hammond that another Budget is possible next year if there is a no-deal Brexit, suggesting it would be the chancellor’s call.
“If the economic circumstances change, then we would consider economic interventions,” the spokesman added.
It followed a call by a widow to Nick Ferrari on LBC who claims working tax credit but expects to lose about £300 a month under the new system because some of her income comes from her late husband's occupational pension.
Mr Rees-Mogg said: "Universal credit is a good system in that it helps people into work and means that work always pays, and that is the most successful route out of poverty, but to have a system that takes £300 a month out of people's pockets, particularly widow's pockets, shows that there is a failure in the implementation.
"I can only apologise and say that as somebody who voted for the Universal Credit, I'm very concerned that it's working in this way and what you highlight, and what listeners will be hearing today, will make many people think that some reform needs to be made to ensure this doesn't happen, and to recognise that if there is money available to be spent in this budget, sorting out problems like the one you refer to would be my priority, even over and above adding to the roadbuilding projects."
Transport Secretary Chris Grayling has insisted that flights between the UK and EU will not be grounded after Brexit despite admitting that talks on route access have not begun.
He told a gathering of UK airport bosses that the "process is not in our hands".
The single market for aviation, created in the 1990s, means there are no commercial restrictions for airlines flying within the EU.
The continuation of flights between the UK and the EU after Brexit will require either a fresh deal with the European Commission or bilateral agreements with individual countries.
Speaking at the annual conference of the Airport Operators Association, Mr Grayling said: "I have had plenty of talks with both the Commission and other transport ministers.
"We will start formal talks as soon as they are willing to start formal talks. As I sit here today, they haven't been.
"But I haven't met one single person either in the Commission or a member state who believes there will be an interruption to aviation."
Mr Grayling noted that Ryanair boss Michael O'Leary, who has repeatedly claimed flights could be grounded, is "selling tickets for next summer and expanding the number of routes between the UK and the European Union".
He went on: "There is no way that flights will stop between the UK and the EU after March."
The Independent has launched its #FinalSay campaign to demand that voters are given a voice on the final Brexit deal.
Sign our petition here
