Finding an extra £20 billion for the NHS has left no extra money for schools, chancellor Philip Hammond has reportedly told the cabinet.

Theresa May yesterday confirmed that NHS England would benefit from an annual 3.4 per cent rise up to 2024, equivalent to an extra £394 million per week in real terms.

Mr Hammond used a presentation to senior ministers yesterday to rule out extra spending on areas including schools, defence, prisons and police, The Times has reported.

'The taps won't be turned on'

One cabinet minister is reported to have said that there was shock at what this meant, saying: “The atmosphere was quite muted. Ministers could see the implications are going to make life quite difficult. Any sense that the taps are about to be turned on were dispelled.”

Schools are facing a real-terms 4.6 per cent cut between 2015 and 2019, although spending is being maintained between 2017 and 2019.

Later this morning, school funding experts are due to speak before the House of Commons Education Select Committee.