The UK Government will borrow an additional £122bn between now and 2020 to mitigate the impact of the country's vote to leave the European Union, the Chancellor has announced.

Philip Hammond made the announcement as part of his Autumn Statement on the country's finances.

In his statement to the House of Commons, Hammond said the Scottish Government will receive £800m of funding from the UK Government through the Barnett formula.

The formula adjusts the funding of the devolved administrations to reflect changes to public spending in England.

He also announced the start of negotiations for a city deal for Stirling. The deals provide more funding for government spending in the zones.

By the end of the process Hammond expects every Scottish city to be in receipt of one.

Since the EU referendum in June, forecasts in tax revenues have been revised down.

The additional borrowing will be used to plug the gap in the financial spending plans outlined by the then Chancellor George Osborne in the Budget in March.

The Chancellor's statement to MPs in the Commons outlined a gloomier economic outlook for the country than what was forecast at the Budget.

Hammond pledged to "to confront those challenges head-on".

The Chancellor, whose statement came exactly five months after the referendum, said the result "will change the course of Britain's history", making it "more urgent than ever" to tackle long-term economic weaknesses.

The UK will experience higher inflation and the government will borrow and spend more money in the next few years than previously outlined at the budget in March.

The Office for Budget Responsibility (OBR), which provides the official independent forecasts of the economy, has revised down its growth forecast from March.

Earlier this year, the OBR estimated the economy would grow by 2.2% in 2017. The body now forecasts the economy growing by just 1.4%.

Next year, the body also expects national debt as a percentage of GDP to rise to 90.2%, up from 81.3%.

In total the OBR expect growth to be 2.4% lower than previously expected due to the vote to leave the European Union.

The Chancellor also abandoned the government's plan to achieve a fiscal surplus by the financial year 2019-20. Instead Hammond will want to achieve this "as early as possible in the next parliament".

Also announced by the Chancellor was a rise in the national minimum wage from £7.20 to £7.50 for those workers aged over 25.

Hammond announced this would be the last Autumn Statement, with the Budget instead being moved to this time next year.

He will make a statement in spring instead to respond to the OBR's forecasts but it will not be a "major fiscal event".

David Mundell, the secretary of state for Scotland, welcomed his colleague's statement.

He said: "Today's Autumn Statement will build an economy that works for everyone in Scotland and the rest of the UK.

"The rise in the National Living Wage means a well deserved pay rise for thousands of Scots and the freeze in fuel duty will make it about £10 cheaper for drivers every time they fill up their car.

"Most significantly for Scotland is the £800m of extra capital funding. This is as a result of the Chancellor's decision to invest in infrastructure but it is for the Scottish Government to step up now.

"If it is used properly by the Scottish Government, this will make a real difference to productivity, jobs and growth in Scotland."

He added: "The UK Government's decisions today mean a secure economy based on the broad shoulders of the UK, more funding and more powers for Scotland."

The statement was the first opportunity for Hammond to amend the country's spending and borrowing plans since the UK voted to leave the European Union in June.

The Prime Minister has stated she wants the country to trigger Article 50 to legally begin leaving the European Union by the end of March. After it is triggered, the process is expected to last two years.

There is currently a Supreme Court case to decide if Theresa May can trigger the process on her own without the consent of MPs.