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The UK must "seize the opportunities" from Brexit while tackling deep-seated economic challenges "head on", Philip Hammond is to say in his second Budget.
The chancellor will promise investment to make Britain "fit for the future" as an "outward looking, free-trading nation" once it leaves the EU in 2019.
But he will also commit to supporting hard-pressed families with the cost of living and address housing shortages.
Labour say he should call time on austerity and boost public services.
In his Commons speech, which will begin at about 12:30 GMT, Mr Hammond will set out proposed tax and spending changes.
He will also update MPs on the current state of the economy, future growth projections and the health of the public finances.
He has been under pressure in recent months from sections of his party who argue that he is too pessimistic about the UK's prospects when it leaves the EU.
In response, he will set out his vision for the UK after Brexit as a "prosperous and inclusive economy" which harnesses the power of technological change and innovation to be a "force for good in the world".
Unlike past years, few announcements have been briefed out in advance of the big day.
But the chancellor is expected to announce more money for teacher training in England and extra cash to boost the numbers of students taking maths after the age of 16.
He has signalled he wants to speed up permitted housing developments and give more help to small builders.
In a nod to younger voters, discounted rail cards will be extended.
An extra £2.3bn for research and development and £1.7bn for transport links are designed to address the UK's lagging productivity.
Extra money is also expected to be found for new charge points for electric cars and for the next generation of 5G mobile networks.
Expect the theme of innovation to ring through the speech, with Mr Hammond hailing the UK as being "at the forefront of a technological revolution".

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More details on the royal wedding between Prince Harry and Meghan Markle are expected to be revealed later.
Clarence House announced on Monday that the couple were engaged and planning to marry in spring, but no details of the ceremony or specific date were given.
In their first joint TV interview, the prince said "beautiful" Ms Markle "just tripped and fell into my life".
And the fifth in line to the throne revealed he proposed to the American actress as they made roast chicken.
'Incredibly happy'
The announcement, which was issued by Clarence House, the Prince of Wales and Duchess of Cornwall's official residence, said details about the wedding day would be unveiled "in due course".
However, the Archbishop of Canterbury has indicated the couple will have a church wedding, saying the pair had "chosen to make their vows to God" in a religious ceremony.
And royal watchers have mooted that the date of the wedding is unlikely to be in April, as Prince Harry's sister-in-law the Duchess of Cambridge is expecting her third child around that month.
Harry: Stars were aligned when I met Meghan
The prince and the actress
Who is Meghan Markle?
Profile: Prince Harry
After news of the engagement was released, a Buckingham Palace spokesman said the Queen and Duke of Edinburgh were "delighted for the couple and wish them every happiness".
Prince Charles also said he was "thrilled", while Ms Markle's parents, Thomas Markle and Doria Ragland, said they were "incredibly happy".
Prince Harry's brother Prince William and Catherine, Duchess of Cambridge, who were married at Westminster Abbey in 2011, said they were "very excited for Harry and Meghan".
'Very romantic'
On Monday, Prince Harry revealed he proposed earlier this month during a "standard, typical night for us" at his home in Kensington Palace.
Prince Harry and Meghan Markle
"It was just an amazing surprise. It was so sweet, and natural and very romantic. He got on one knee," Ms Markle said.
Prince Harry said: "She didn't even let me finish. She said, 'Can I say yes.'
"Then there were hugs and I had the ring in my finger.
"I said, 'Can I give you the ring?' She said: 'Oh, yes, the ring.' It was a really nice moment. Just the two of us."
Turning to Ms Markle, Prince Harry said: "And I think I managed to catch you by surprise as well."

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Bryant Johnson could be the human race’s best bet for survival in the face of alien invasion but police have arrested him for being a drunkard. Johnson told police in Casper he had travelled back in time from 2048 to warn people about an alien invasion.
Police were called to an address in Casper, Wyoming, and found Bryant Johnson trying to convince people to leave town because of the impending alien invasion. He also demanded to see the town’s president. In a plot twist worthy of time travel masterpiece 12 Monkeys Johnson complained his time travelling had gone awry as he meant to turn up in 2018 not 2017.
KTWO Radio reported police officers noticed he had bloodshot eyes, slurred and smelt of alcohol. Instead of using his expertise in repelling alien invasions Wyoming Police arrested him for public intoxication. Bryant’s Facebook profile has an alien theme, his profile picture was changed to that of an alien head back in July.

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A woman who lost her purse behind a radiator at the Ritz nightclub in Manchester 30 years ago has been discovered. Sarah Dale’s belongings were found stuck behind a radiator by workmen who are carrying out a refurbishment of the club.
Inside there was a library card, bank details and 12p in cash. The club wanted to re-unite the bag with its owner and launched an online campaign, which succeeded – she is a lawyer living 200 miles away from the Ritz in South London. She said that she’d been contacted by friends who had seen the appeal including one who said she owed her £5 from that night. Sarah Dale, 51, is now a CPS lawyer and was found by MailOnline’s Nick Fagge. She told him: ‘It’s me! It’s a nice story and now I want my 12p back!’
She said that she was disappointed that her library card and residents’ association cards were in there because that’s not rock ‘n’ roll. She said: ‘We went there quite a few times, but I don’t remember that night. You’d think I would remember something like having my wallet taken, but I don’t. I have no recollection of it at all.’
She added: ‘It doesn’t surprise me that there was only 12p in it though, I was a hard up student in those days! I was on a tight budget of something like £10 a week. If there was only a few pence left I must have lost it at the end of the night.’ The wallet held a Cheshire Libraries and Museums card, a University of Manchester Whitworth Park Residents’ Association card from 1985/86, a Midland Bank cheque card, and a payslip. Chris Mann, bar manager at the Ritz, said: ‘We were clearing out the other day because we’re having a refurb in the offices, and it had fallen down the back of a radiator – it must have been lodged there since god knows when.
‘Inside, it has a library card, an old Midland Bank cash cheque card, about 12p in change, a hand-written invoice, a payslip with the name of the company she worked for and a photographic student ID with an address in Thelwall. ‘She would maybe have been about 18 or 19 back then, so she might be in her early 50s now. ‘It’s coming up to our 90th birthday but this wallet has been here for about 30 years, so we just figured it might be nice to reunite it with its owner. ‘We want to have a chat with them to find out more about what they were doing in the Ritz and whether they actually remember it.’

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Direct action can work to achieve change – just ask Jeffrey Shaver.
He successfully lobbied to have his bong and marijuana returned by police, after standing outside court in his boxers for a month.
‘RETURN MY BONG,’ one of his signs read in large letters, while another read ‘RETURN MY MARIJUANA.’
The 31-year-old also had a T-shirt made which said ‘Return my weed and bong,’ for days when he felt like wearing clothes.
It all began when he was arrested for possession of weed, with police seizing his drugs and paraphernalia.
Police were called initially when Jeffrey caused a disturbance near vending machines at a hospital where he was being treated for a panic attack.
He was charged with possession of marijuana, which has now been dropped.
‘The action of the Crown on this marijuana case has been completely unreasonable,’ Jeffrey told The Record. ‘There should have been no need to continue (protesting) for such a long time.’
He should be getting his bong and weed back soon – but now has another problem to deal with.
Police have charged him with public nudity over his protest in a thong outside Kitchener court in Ontario, Canada.

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We can deal with a crying baby, a snoring pensioner, even a drunken businessman talking too loudly, but there is one sin that simply can’t be forgiven at 40,000 feet – someone sticking their feet into your personal space.
It’s not surprising then that Jasmine Mays had to document this heinous crime… and her priceless facial reaction to it.
The Zumba teacher was on a flight recently when the passenger behind her decided to use her armrest to perch her well-manicured feet on (we only say ‘her’ because of the nail varnish – it could very well be a man).
Rather than start screaming at the person for the incredibly selfish gesture, Jasmine decided to take the high road and shame the passenger by posting this hilarious video online.
While Jasmine didn’t say where the flight was going to or reveal the offending passenger’s identity, her face says it all.
The video soon went viral, with many comments suggesting that Jasmine should have ‘accidentally’ elbowed the feet until they moved.

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A family called out the RSPCA after mistaking a dirty sock for an apparently lifeless lizard.
The stripey pink ‘creature’ was spotted underneath a bed at a property in Goring Road, Coventry, last Friday, prompting a call to the animal welfare charity.
Animal collection officer Vic Hurr, who was called to the scene, said she approached the find cautiously as she was unsure about what breed it could be.
The RSPCA officer said: ‘It was around seven inches long and about two inches wide.
‘It was protruding from the edge of the bed and it wasn’t moving at all. As it wasn’t very light, I got out my torch to see better and that’s when I realised it wasn’t a lizard at all … it was a pink stripey sock!
‘I advised the young girl whose bedroom it was to tidy her room and to take care of her socks, but not before reminding her that another one will turn up soon as they are usually in pairs!’
An RSPCA spokesman said family members were ‘quite mortified’ at their error.

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In a breakthrough, life-changing* study, researchers have found that drinking coffee is linked to living longer.
(*breakthrough and life-changing for those of us who thrive on the stuff.)
The study, presented at the European Society of Cardiology , found that people who drink four cups of coffee or more a day have a lower risk of death than their caffeine-free friends.
Spanning 10 years, nearly 20,000 participants were quizzed on their health in conjunction with their coffee consumption.
In the end, researchers discovered those who consumed large amounts of the sweet elixir that is coffee were 64 per cent less likely to die of any cause during the period of the study compared to those who said they never or almost never drank coffee.
Interesting stuff!
It's important to note that the study was completely observational. Meaning, it hasn't been proven drinking coffee equals living longer. It was found to merely be a link.
Still, while we're not encouraging you all to go out and consume a diet completely consisting of Arabica, now you've got a worthwhile excuse to tip that bearded hipster barista at your local cafe.
They may, just may, be helping you live longer.
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There's no need to even leave the house to partake in the glory that is cafe-standard coffee in order to live longer, though.
Asda have a great range of newly-released coffee products to put an extra pep in your step on the way to the office in the morning.
Their Extra Special coffee pods are compatible with Nespresso® machines and come in four different flavour profiles.
So whether you like smooth, strong, full-bodied or delicate, you can team coffee pod with taste.
Even better, you can pick them up for £2, down from £2.48.
If you're after a bolder, powerful drop, try the Possente pods. Here you get a full-bodied blend with bold, assertive flavours.
In the vibe for something more relaxing and smooth? The Aromatico pods are roasted gently to create an easy-going blend of nuts, malt and sweet caramel.
The Levigato is for fans of a rich, smooth roast of sweet malt, caramel and dried fruits.
If you're after something more intense, try the aptly-named Intenso . Possessing a stronger, dark potency, this is a blend of Arabica and a dash of Indian Robusta, with a dark chocolate finish.
Feeling awake now?

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Police are hunting two NUNS after an attempted bank robbery .
Two armed women stormed into a branch of the Citizens Bank in Tannersville, Pennsylvania, around midday on Monday dressed in nuns' habits.
One suspect, who appeared to be carrying a black handgun, demanded money from the teller while the other waited by the door, police said.
They fled empty handed and are now being hunted by the FBI.
The suspects are described as two Hispanic females, both approximately 5’-5’2” tall and of medium build.
Each woman was wearing a black nun’s habit and veil, with a white wimple covering her hair and part of her face.
One woman also had on dark sunglasses.
Both are considered armed and dangerous.

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Theresa May and Jeremy Corbyn faced a grilling from members of the public in a BBC Question Time election special. Here are five key takeaways.
1. The audience was on fire
It might not have been the head-to-head many people wanted - which Mr Corbyn said was a "shame" - but the audience didn't hold back when it came to asking difficult questions.
The tone was set from the get-go, when Mrs May was asked whether the public should trust anything she says given her "track record of broken promises and backtracking".
The tough questions kept coming. The Conservative leader got: "Secretly, do you really regret calling this election, now the polls have moved against you?" And: "do you really think you actually have any real leverage with Brussels?"
Mr Corbyn didn't get off lightly either, with the first question from the audience on why the British public should trust him to negotiate Brexit.
He was also asked to rule out a deal with the SNP, and: "Why have you never regarded the IRA as terrorists?" Mr Corbyn said he "deplored all acts of terrorism."
2. The magic money tree was back, again
Home Secretary Amber Rudd repeatedly accused Mr Corbyn of having a "magic money tree" during the seven-way debate on Wednesday, and Mrs May took up the baton, repeating the mantra on a number of occasions.
"There isn't a magic money tree that we can shake that suddenly provides for everything that people want," she said.
Mr Corbyn was later asked if his manifesto was "a letter to Santa Claus."
Waving a hard copy about, the Labour leader said it a "serious and realistic document" that addressed the issues that many people faced.
3. Theresa May had awkward moments on the NHS
Mrs May came under fire from a nurse, Victoria Davey, over the 1% cap on annual public sector pay rises, asking how was it "fair" that her 2009 pay slip "reflected exactly" what she earned today. Mrs May said she recognised the job nurses did, but the Conservative Party "had had to take hard choices across the public sector".
Another woman with mental health issues was close to tears as she spoke about being asked about suicide attempts during a work capability assessment. Mrs May said she would "make no excuses" for the way she had been treated and people with mental health issues had to be given "more support at an early stage."
But BBC political correspondent Gary O'Donoghue said Mrs May seemed uneasy and was "reluctant to engage and empathise beyond a few carefully chosen words".
There was another awkward moment when an audience member asked Mrs May if mental health funding was "one of [her] soundbites" when asked about the NHS.
She accused her of failing to differentiate between mental health and learning difficulties when speaking to a woman while on the campaign trail in Oxfordshire - but Mrs May said the woman had spoken to her about both issues.
4. Jeremy Corbyn was put under pressure on nuclear weapons
The Labour leader, who's made no secret of his long-held opposition to Trident despite agreeing to press ahead with renewal of the system, was repeatedly asked whether he would be prepared to push the button if the UK was under attack.
After saying he thinks the "idea of anyone ever using a nuclear weapon anywhere in the world is utterly appalling and terrible", he ruled out authorising its "first use".
Election latest and live updates
Public hit leaders' vulnerable spots
But he declined to give a straight answer on whether he would use nuclear weapons in retaliation, with BBC anchor David Dimbleby accusing him of dodging the question.
"If we did use it, millions are going to die. You have to think this thing through," Mr Corbyn said. "I would decide on the circumstances at the time," he said.

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