Britain will need to borrow £122 billion more over the next five years than it expected before voters made a decision to leave the European Union in June, Hammond said.
Hard-pressed savers, who haven't seen a decent interest rate for cash in nearly a decade, were thrown a small bone in the form of a new three-year 2.2% National Savings bond in which they can invest up to £3000.
"We've seen these fees spiral, despite attempts to regulate them, often to hundreds of pounds", Hammond told MPs in the House of Commons.
"In view of the uncertainty facing the economy, and in the face of slower growth forecasts, we no longer seek to deliver a surplus in 2019/20", Hammond said.
"Our central forecast assumes that the United Kingdom adopts a tighter migration regime than that now in place, but not sufficiently tight to reduce net inward migration to the desired tens of thousands", it said. Prime Minister Theresa May said she will trigger the process to depart the alliance by March next year.
But the OBR said the Government could be expected to borrow £122 billion more over the five years than it predicted at the time of the Budget in March - three months before the Brexit vote.
The net public sector debt is forecast to hit a peak of 90.2 per cent of economic output in 2017/18, he said.
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Also, Mr Hammond said that the controversial triple lock on pensions would stay until the end of this Parliament.
After next year, the Budget will be staged in the autumn, with a downscaled spring statement, responding to the forecasts from the OBR - but with no major announcements.
Inflation, projected to next year rise to 2 per cent by the Bank of England, is forecast to take a toll on consumers as weak sterling is passed on in higher prices.
And a housing infrastructure fund of £2.3bn will be formed to build infrastructure for 100,000 homes in areas of high demand with a further £1.4bn to build 40,000 additional affordable homes.
The tax-free personal allowance will increase to £12,500 by the end of the Parliament, with a higher rate threshold of £50,000.
Other key points, such as the announcement of investment in the transport and roads infrastructure, an increase of the National Living Wage from £7.20 - £7.50 an hour from April 2017 and the recognition of the importance of a strong digital infrastructure will also benefit both the plastics - as well as wider - United Kingdom manufacturing industries.
Overall, borrowing is set to be £68.2bn this year; £59bn next year; £46.5bn in 2018/19; then £21.9bn; £20.7bn, and finally £17.2bn in 2021/22.