Britain's national debt has seen its first sustained fall for 17 years, Chancellor of the Exchequer Philip Hammond said Tuesday in his spring economic statement to the House of Commons.

Hammond told MPs the debt forecast is nearly 1 percent lower than it was last November, and will peak at 85.6 percent of GDP in the current financial year, reducing each year and reaching 77.9 percent in 2022-23.

The chancellor said forecast economic growth by the Office for Budget Responsibility (OBR) for 2018 has been revised up from 1.4 percent to 1.5 percent and is then unchanged at 1.3 percent in 2019 and 2020, before picking up and reaching 1.5 percent in 2022.

Hammond said borrowing is having its first sustained fall in debt in 17 years and the deficit is 108 billion pounds (151 billion U.S. dollars) lower than it was in 2010, adding: "there is "light at the end of the tunnel on austerity".

He said the British economy has grown every year since 2010 with the manufacturing sector enjoying its best winning streak in 50 years.

Hammond announced that London would receive an additional 2.4 billion U.S. dollars to deliver 26,000 affordable homes in the capital, taking the total number to more than 116,000 by the end of 2021/22.

He concludes his statement saying: "Our economy will remain outward looking, confident and ready to compete with the best in the world."

John McDonnell, the main opposition Labour shadow chancellor, responds by saying Hammond's complacency is astounding.

McDonnell said public services in Britain face a crisis never seen before, accusing the chancellor of ignoring the doctors, the nurses and emergency services.

"This crisis could turn into a catastrophe," warns McDonnell.

"Wages in real terms are lower than they were in 2010 and are still falling, leaving 11 million families in Britain worse off," added McDonnell.

The Spring Statement gives an update on the overall health of the economy and OBR forecasts

A spokesman for the Treasury said: "The forecasts show the British economy continues to grow, continues to create jobs and continues to beat expectations. The economy has grown for five consecutive years, and exceeded expectations in 2017.The OBR has increased their forecast for growth this year."