PHILIP Hammond will today signal his desire to open up the digital market-place to greater competition, away from the “increasing dominance” of technology giants such as Apple, Facebook and Google, to give consumers greater choice.

In his Spring Statement, the Chancellor will respond to a UK Government-commissioned report that says the tech giants simply do not face enough competition.

The review led by Harvard Professor Jason Furman - chief economic adviser to President Barack Obama - warned UK competition rules had to be updated to be fit for the digital age.

He hailed the benefits brought by technology firms but stressed the rules needed to evolve to keep pace with the market.

Prof Furman urged UK ministers to increase competition in the digital sector by setting up a new competition unit and strengthening outdated laws.

He believes more companies would then be able to join the market on a more equal-footing, ushering in a new wave of innovation and the creation of new social media and online search platforms.

“My panel is outlining a balanced proposal to give people more control over their data, give small businesses more of a chance to enter and thrive, and create more predictability for the large digital companies. These recommendations will deliver an economic boost driven by UK tech start-ups and innovation that will give consumers greater choice and protection,” said Prof Furman.

Mr Hammond commented: “Competition is fundamental to ensuring the market works in the interest of consumers but we know some tech giants are still accumulating too much power, preventing smaller businesses from entering the market.”

He added: “I will carefully examine the proposals put forward by the panel before responding later this year, setting out how the Government will implement the changes needed to ensure our digital markets are competitive and consumers get the level of choice they deserve.”

The Chancellor’s Spring Statement will be overshadowed by Brexit as it will be sandwiched between two key votes on Britain’s EU withdrawal: on a no-deal outcome and extending exit day.

The Treasury has made clear it will "not be a fiscal event," meaning there will be no major tax plans or spending commitments announced. Rather, Mr Hammond will focus on the state of the economy.

He is set to gloss over the forecasts for reduced growth - the Office for Budget Responsibility is expected to downgrade its 2019 forecast from 1.6 per cent to around half that - and concentrate on better tax receipts because of higher wages, paving the way for higher public spending, as well as figures on lower borrowing, a decreasing deficit, rising employment, historically low unemployment and falling inflation.

The Chancellor had pointed to a £20 billion public spending splurge on the NHS, education and the armed forces should MPs have backed Theresa May’s revamped Brexit Plan but now with the prospect of a delay in Brexit any “deal dividend” has been pushed back for months as the uncertainty for Britain’s businesses looks set to continue until at least the summer.

Mr Hammond will also make clear to MPs the “very bad” dangers of a no-deal outcome just hours before they are due to vote on whether or not to take the option off the negotiating table. The expectation is there will be a large Commons majority to do so.

The statement is set to have a strong green tinge; Mr Hammond has already alluded to how Britain should be more “creative and innovative” on climate change.

Consultations are expected to be announced on reforming the market economy model to better protect the environment, on assessing the economic value of biodiversity globally and on greener transport reforms, including if transport firms should offer additional carbon offsets.

There are expected to be measures on greater energy efficiency in new homes; the Chancellor has vowed to at least halve the energy use of new-build property by 2030.

The moves follow last month's “climate strike” when thousands of schoolchildren skipped lessons and joined demonstrations urging more action to protect the planet.

In other developments:

*campaigners will today hand in a petition to the Treasury, calling for the cancellation of any further sale of the Government’s shares in Royal Bank of Scotland and to keep the finance house in public ownership with a mission to serve the UK public;

*the British Retail Consortium has warned the Chancellor the High St "Armageddon" which has resulted in the loss of nearly 20,000 stores close since 2015 will continue unless business rates are cut and

*the Treasury and Home Office are said to have been at loggerheads over extra spending to tackle the crisis in knife crime. The spat follows a letter signed by every London MP to put more cash into Scotland Yard to help fight the rise in knife crime in the UK capital.