Statement

THERE are a couple of big set pieces for any Chancellor. There is the budget in March and the Autumn Statement that, just like its grander cousin, is a time when he reviews the economy and makes tax and spending announcements.

This time around the Chancellor had to accept that he will miss his deficit reduction target by a year although the independent Office for Budget Responsibility stated that this is due to poor growth amongst our trading partners including the Euro-zone.

The OBR made it clear that the Chancellor is right to stick to his course — but that did not mean that he was not able to make some important announcements including more to be paid by the wealthiest with large private pensions and a real reduction in the size of welfare benefits.

Labour will present the welfare cuts as heartless but it should be borne in mind that due to strong pay restraint in businesses and government, average earnings have risen by just 10% since 2007/8 whilst out of work benefits have gone up by 20%.

So for the next three years the Government will uprate most working age benefits and tax credits by below the rate of inflation.

Other important announcements included further reductions in Central Government expenditure. Whitehall expenditure has already been cut to its lowest level since the war.

Now a further 5 billion is to be saved and this money invested in new infrastructure, ensuring that bureaucratic waste is converted into job creating new roads and homes – especially important to the struggling construction industry.

In the South West this will result in additional dual carriageway sections along the A30.

Finally and most pleasingly for the hard-pressed motorist next year's planned 3p per litre tax increase on fuel is to be scrapped entirely.