Philip Hammond's pledge that "austerity is finally coming to an end" has faced fierce scrutiny from MPs and economists delivering their verdict on the Budget.
The chancellor sought to strike an upbeat tone with a multi-billion pound giveaway on Monday, which included early tax cuts for millions of workers, minimum wage rises and the decision to plough some £1bn into the troubled universal credit scheme.
However respected economic thinktank, the Institute for Fiscal Studies (IFS), said Mr Hammond had taken a "gamble" with the public finances, which could lead to higher borrowing and debt.
Experts from the Resolution Foundation also ran the rule over the Budget, warning that low and middle-income families would be hit hardest by the measures.
Meanwhile, John McDonnell became embroiled in a row when he stood by his support for the chancellor's tax cuts for the middle classes in the face of criticism from his own party.
The shadow chancellor said he would not reverse changes that benefit higher earners because people like head teachers have had a "rough time" in recent years.
But Labour MPs said the move was wrong, and condemned him for supporting the wealthy while there are "people dying on British streets".
If you want to follow our coverage as it happened, see the updates below
Matt Hancock was mocked in the Commons for a geography mix-up which saw him answer a York MP's social care concerns by referring to Scotland.
The Health Secretary appeared to believe Rachael Maskell was from the SNP as the Labour MP was sat near where the third largest party in Westminster is based in the chamber.
Shadow chancellor John McDonnell jokingly shouted "get the map" as a Tory MP left the frontbench shortly after the gaffe.
Speaking during the Budget debate, Ms Maskell said: "I have very little hope for the old people of our country when they've cut £7bn from the social care budget and only replaced it with £240 million.
"How is that safeguarding our old people for the future?"
Mr Hancock replied: "In Scotland, social care is devolved."
As Labour MPs shouted "York!", the Cabinet minister attempted to make a smooth recovery by adding: "And in York, the amount of social care money is going up thanks to the decisions yesterday."
Theresa May has stood firm and ruled out giving the British people a final say on her Brexit deal, despite a groundswell of support for a second vote.
700,000 people took to the streets of central London last weekend to demand a referendum, while over a million people have now signed The Independent’s petition, as polls show a trend in favour of a plebiscite.
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John McDonnell has defended his decision to support Philip Hammond's tax cuts for higher earners amid a growing revolt from members of his own party.
It follows the Resolution Foundation's verdict, claiming the cut announced in Monday's Budget, will "overwhelmingly benefit the rich" and the top ten per cent of households.
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'Philip Hammond's Budget: what he said – and what he really meant'
The IndependentOur chief political commentator imagines what the chancellor was thinking as he delivered his big ‘fiscal event’"I don't think there's ever been any suggestion that there was any pre-meditated murder or anything like that."It was an error in conflict. It was admitted. Reparations have been offered."
Pressed on his support for the policy in a post-Budget briefing with journalists, Mr McDonnell said: "We're not going to oppose it on the basis that it will put more money into pockets, but our position is very, very clear.
Nearly all the losses from changes to tax and benefits announced since the Conservatives took power have been shouldered by women, House of Commons Library research found.
It found 56% of the £3.6bn boost in the chancellor's tax and welfare measures will go to men.
Over the last eight years, 87% of the losses have fallen on women, up 1 per cent compared with before the financial statement, according to the research.
Women are hit harder by welfare reforms while men are more likely to gain from tax allowances, according to Ms Cooper.
She said: "Each time the chancellor has the chance to narrow the gap he does the opposite.
"By choosing to put more into raising tax allowances including for the highest earners than into tackling the problems with Universal Credit, the chancellor has ignored the fact that low earners are still being hardest hit, and that means women are still losing out.
"Women are more likely to be hit by welfare cuts including Universal Credit whilst men are more likely to gain from the increased tax allowances.
"The chancellor's decision to cut taxes for those on £100,000 a year helps more men, when he could have done more to sort out the problems with Universal Credit and the welfare system for families in poverty instead.
"In the centenary year of the first women getting the vote, it is shocking that the Treasury still refuses to carry out its own gender audit of the impact of its policies."
Interesting exchange from the Commons earlier - Foreign Secretary Jeremy Hunt has refused to apologise for his comparison of the EU to the Soviet Union, despite calls from opposition MPs.
Shadow Europe minister Khalid Mahmood asked if he had apologised in person to Eastern European counterparts, who lived under Soviet occupation, for his remarks at the Tory conference.
The SNP's Stephen Gethins also asked Mr Hunt to apologise for the "crass" comparison after reading out responses from Latvian and Lithuan dignitaries.
But Mr Hunt did not say if he had offered any apology to representatives from Eastern European countries when they visited his official residence in Chevening ahead of a foreign affairs council in Luxembourg.
He said: "We had a very enjoyable time, including getting a bit lost in the maze.
"But, to answer his question directly, I stand by exactly what I said, which was that a club of three countries that was set up in part to stand against the Soviet Union and totalitarianism should not - in a way that's inconsistent with those values - seek to punish someone who wishes to leave."
SNP Europe spokesman Mr Gethins also attacked Mr Hunt for his refusal to apologise for "crass remarks" that had "deeply offended" those whose countries were occupied by the Soviets.
Back in the Commons, health secretary Matt Hancock is answering for the government.
He says 'careful stewardship' of the economy has allowed the government to splash out in the Budget. He accuses Labour of coming up with 'no new ideas and simply talking Britain down'.
Pressed on the cuts to capital and public budgets in the Commons, health secretary Matt Hancock said he could guarantee £20.5bn for the NHS.
"It is the biggest increase in any spending commitment for any public service in the history of this country - and it's a pity the leader of the opposition doesn't want to hear about it."
He went on: "This is not government money, this is not NHS money, this is the hard-earned money from taxpayers and we need to make sure it is spent wisely."
MPs have moved onto the second day of Budget debate, where they will offer close scrutiny to the chancellor's spending plans.
Shadow chancellor John McDonnell says the prime minister 'raised the hopes' of teachers, police officers, councils when she promised austerity was over in her Conservative conference speech.
'Those hopes were dashed. At best, they got what the chancellor described as ‘little extras’. No wonder there are so many teachers, police officers, local councillors who feel bitterly disappointed at the PM's broken promise.
'Because yesterday’s budget was not the end of austerity. Even with yesterday’s Budget, two thirds of the planned welfare benefit cuts will still be rolled out.
'Outside of the NHS, departmental budgets are flat. And the Resolution Foundation this morning revealed that some departments face a further 3% cut in their budgets by 2023.'
In Foreign Office questions, Jeremy Hunt has been forced to clarify that he had "no prior knowledge" of a plot to murder journalist Jamal Khashoggi following reports that British intelligence services were aware three weeks before the incident.
Mr Khashoggi, who had been an outspoken critic of the crown prince, was killed in Saudi Arabia's consulate in Istanbul on October 2.
Saudi Arabia initially denied all knowledge of the journalist's fate but the Saudi public prosecutor has since described it as premeditated murder organised by "rogue agents".
Reports on Sunday suggested that MI6 had discovered the plot and had warned Saudi Arabia to cancel the mission.
Responding to a question from Labour MP Gill Furniss, the foreign secretary said: "I hope she will understand that I don't comment on intelligence matters, but if it reassures her I had absolutely no prior knowledge myself of the terrible Khashoggi murder and was as shocked as I think everyone else."
Shadow foreign secretary Emily Thornberry also pressed him to answer, saying: "If the allegations in this weekend's report are true they are extremely serious, it was reported in early September that our intelligence services became aware of the Saudi plan to abduct Jamal Khashoggi and on October 1 they knew that a Saudi team had been dispatched to Istanbul for that purpose.
"Now I hear what the Foreign Secretary has said, that he didn't know, but did the intelligence services know and has he asked them?"
Mr Hunt responded: "I have to repeat what I said to her and I'm sure she will understand that it isn't possible for a Foreign Secretary or indeed any minister to comment on intelligence matters for very obvious reasons.
"I didn't know about this attack, it's very important that she understands that and this House understands that, and we are as shocked as everyone else about what happened."
John McDonnell has come under fire from within Labour ranks after backing Philip Hammond's income-tax cuts for millions of people.
The shadow chancellor said the party would respect changes to tax thresholds that would cost £9.5bn in lost revenue in the next six years.
Instead, it would focus on creating a "fair taxation system" clamping down on evasion and avoidance and rolling back cuts to corporation tax, he told BBC Radio 4's Today.
The Resolution Foundation think tank had said earlier its analysis showed the tax cuts would "overwhelmingly benefit richer households", with almost half (45%) set to go to the top 10% of households alone.
The cuts were criticised as "tax cuts for the rich" by shadow foreign secretary Emily Thornberry on Monday and former Labour minister Andy Burnham.
Responding on Twitter to comments made by the shadow chancellor, Mr Burnham, now mayor of Greater Manchester, wrote: "At a loss to understand why we are doing this."
Torsten Bell, director of the Resolution Foundation, added: "Labour says it will support the income tax cuts announced yesterday - almost half of which goes to the top ten per cent of households alone.
"Nearly 90% goes to the top half. Not a good idea."
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