Cash to develop cutting-edge batteries for electric cars to combat air pollution will be unveiled in this week's budget.

It will be part of a £500m fund the chancellor hopes will help Britain become the go-to place to develop robots, electric cars and artificial intelligence post-Brexit.

But Mr Hammond is likely to adopt a tone of pre-Brexit caution when he addresses MPs on Wednesday.

He is not expected to go on a mass spending splurge despite better-than-expected growth forecasts after warning this weekend that Brexit will lead to 'unexpected challenges'.

As part of his technology announcement Mr Hammond will launch a £270m research and development challenge for businesses and universities to develop robots to work offshore, in nuclear plants and deep mines. He will also allocate cash for scientists to create cutting edge batteries for electric cars and come up with new ways to develop and manufacture drugs. He will also fund 1,000 PhDs and new fellowships.

Among other measures likely to be unveiled in Mr Hammond's first spring budget since moving into Number 11 are £500m a year to elevate technical education and increase the amount of training for 16-19 year olds on technical routes by more than 50pc, and extra cash to help local authorities with mounting social care bills.

A cross-party group of MPs on the Communities and Local Government committee said at the weekend a further £1.5m should be found in the budget to help plug funding gaps. Plans to clamp down on confusing small print will also be included in the financial blueprint for Britain.

There is a push for more help to be given to small businesses which will be the hardest hit by the first changes to business rates in seven years. The government has come under fire over its changes to business rate calculations which could see some businesses, including many hospitality businesses, see the rateable value of their businesses, which is used to calculate rates, increase three-fold.

There are also reports that there will be a 3p tax rise for self-employed workers as Hammond raises national insurance from 9pc to 12pc.