Eurosceptic MP Philip Davies remains bullish over Brexit Britain's economic future, despite gloomy new predictions

The Conservative MP for Shipley, one of Parliament’s longest campaigners for Britain to leave the European Union, claimed economists were basing their projections on “their personal political views” and he expected them to be proved wrong in the coming years.

His comments came after an Autumn Statement which revealed sweeping downgrades to UK growth and a sharp rise in Government borrowing.

Britain’s economy is set to take a hit of almost £60 billion over the coming five years as a result of the referendum vote to leave the European Union, MPs were told.

The Office for Budget Responsibility slashed growth forecasts and predicted higher than previously expected borrowing, forcing Chancellor Philip Hammond to confirm he was abandoning predecessor George Osborne’s plan to achieve a budget surplus by the end of the decade.

Setting out tax and spending plans in his first Autumn Statement, Mr Hammond said he was striving to ensure the economy was “match fit” for the “new chapter” ahead, unveiling a series of plans aimed at boosting productivity and helping low-income workers.

But the OBR said the Government could be expected to borrow £122 billion more over the five years to 2020/21 than it predicted at the time of the Budget in March - three months before the Brexit vote.

And it said that some £58.7 billion of this was directly attributable to the referendum result and the cost of leaving the EU.

In response, Mr Davies said people would struggle to find an economic forecast about Brexit which had so far proved accurate.

He said: “I don’t accept that the public finances are going to collapse in the way the London-centric economists think, because the referendum didn’t go their way.

“Their projections are based on their personal political views rather than any independent assessment.”

Yesterday’s Autumn Statement was both Mr Hammond’s first and his last - he announced he would be scrapping the mini-Budget in favour of a more comprehensive Budget each spring.

Announcements included a rise in the National Living Wage from £7.20 to £7.50 an hour, tweaks to Universal Credit to lessen the impact of cuts on in-work claimants and a rise in the personal allowance - the amount people can earn tax-free - from £11,000 to £11,500.

But there were also tax hikes, including a rise in insurance premium tax from 10 per cent to 12 per cent.

Mr Hammond said there would be a £2.3bn Housing Infrastructure Fund aimed at delivering up to 100,000 new homes in high-demand areas and £1.4bn to deliver a further 40,000 affordable homes.

Investment in transport and high-speed broadband was also unveiled, but there was little detail about individual projects.

The Government yesterday published a new Northern Powerhouse Strategy - a 30-page document setting out its plans for the North. There was one mention of Bradford, as the host of one of two University Enterprise Zones.

Politicians and business leaders are lobbying for Bradford to be included on a new high-speed rail line between Leeds and Manchester, but a decision over the route will not be unveiled until next year, the strategy says.

Labour’s Bradford West MP Naz Shah said there was little announced which would help people who had “suffered under austerity for the last six years”.

She welcomed the scrapping of letting agency fees and the rise in the National Living Wage, but said household finances were being increasingly squeezed as inflation grew and wages stagnated.

She said: “We have seen a ‘lost decade’ for earnings and real pay is still 10 per cent below its 2007 level. What would have been welcomed was a genuine and comprehensive announcement on the Northern Powerhouse and an opportunity to bring jobs and investment back into Bradford.”

Keighley’s Conservative MP Kris Hopkins welcomed a freeze in fuel duty, a commitment to fund 2,500 new prison officers and £9m of funding for the Cycling Road World Championships in Yorkshire in 2019.

He said: “In what remain challenging times in the wake of the Brexit vote, the Chancellor has delivered a strong package of measures resulting in significant investment in our country’s infrastructure, a boost for businesses and support for working people and families.”

Labour’s Bradford East MP Imran Hussain said he was alarmed by what looked like a £10m funding cut for the Northern Powerhouse Schools Strategy, which had been unveiled in the Budget earlier this year.

He said it appeared like the funding for the strategy had been cut from £80m to £70m.

He said: “This strategy will be vital in helping to turn around education in Bradford, and I will be urgently pressing Ministers to explain the reduction.”

One local tax specialist has warned that small business owners were “left out in the cold” in the Chancellor’s Autumn Statement .

Dave Forrester, who owns TaxAssist Accountants in Keighley, said: “Small businesses are already facing huge challenges from compulsory contributions to staff pension pots, the National Living Wage, changes to the way dividends are taxed and onerous business rates and there was no respite from the Chancellor.

“In fact the further increase in the National Living Wage announced today - from £7.20 to £7.50 an hour from April - could deter recruitment decisions and slow down growth.”

His comments were echoed by Mr Davies, who also warned that costs such as the increase in the National Living Wage could hit struggling small businesses in his constituency.

Labour’s Bradford South MP Judith Cummins has not yet responded to requests for comment.