INDEPENDENT.CO.UK: George Osborne goes for growth (by firing 10,000 civil servants)

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NIGEL MORRIS, Deputy Political Editor: Chancellor George Osborne told the Cabinet today that the country was “on the right track” economically as he briefed it on the contents of this afternoon’s Autumn Statement.
The Prime Minister’s official spokesman said: “The central message is that Britain is on the right track, that we are dealing with our deficit and debts in a fair way.
“That means that everyone must make a contribution, that we are equipping Britain to succeed in the global race.”

OLIVER WRIGHT, Whitehall Editor: One of the key things to look for in today’s Autumn Statement – although almost certainly not in George Osborne’s Commons speech - is what has happened to the UK’s ‘fiscal hole’ or the difference between what we spend and borrow.
Back in May 2010 George Osborne promised to eliminate this by 2015. That’s certainly not going to happen. But figures released today by the Office of Budget Responsibility may well show that the hole is even bigger now than it was in 2010.
Why is that important? Well, under this Government we have had £59 billion worth of tax rises and spending cuts in an effort to eliminate this structural deficit. That’s a pretty big price to pay for no progress on the ‘fiscal hole’ at all and likely to play into Ed Balls’ refrain that the Osborne’s medicine is not working.

OLIVER WRIGHT, Whitehall Editor: It is interesting to see that the Liberal Democrats will be holding their own briefing on the Autumn Statement this afternoon. Normally they let the Treasury do it – but not this time.
Clearly there are going to be trade-offs between welfare cuts and tax rises on the wealthy. The Lib Dems must think they need to put their own spin on the statement – and not let Osborne’s advisors try and set the narrative.

The chancellor added: "People know there are no quick fixes... but they want to know that we are making progress.''

George Osborne: "We are making progress. It's a hard road, but we are getting there. Britain is on the right track and turning back now would be a disaster.''

George Osborne: Forecast for debt interest payments £33 billion lower than predicted two years ago.

George Osborne: OBR says problems in eurozone will "constrain growth for several years to come''.

George Osborne: Since the election, 1.2 million jobs created in the private sector.

Osborne turns his attention to unemployment: Now the OBR expects it to peak at 8.3%

Mr Osborne says transfer of Royal Mail pension fund to public sector produces one-off reduction in deficit of £28 billion.

George Osborne: Bradford and Bingley and Northern Rock Asset Management brought on to balance sheet, adding £70 billion to national debt.

Borrowing set to be £99bn next year, £88bn in the following year, then £73bn, then £49bn, then £31bn.

George Osborne: OBR assesses the Government is "on-course'' to meet fiscal mandate of eliminating structural deficit in five years time.

OBR says the Chancellor will miss target of debt falling by 2015/16 - this will now happen in 2016/17.

George Osborne: Lower deficit has been delivered by public spending plans and "we are going to stick with those plans''.

OLIVER WRIGHT, Whitehall Editor: Osborne has just announced that austerity will go on for an extra year until 2018. In short that means more public sector spending cuts and more pain for civil service. He wants to save an extra £1 billion from Whitehall – and get many more job cuts. It will be very unpopular – and more worryingly could lead to further fiascos like over the West Coast mainline franchise.

George Osborne: Government total managed expenditure to be £745 billion.

George Osborne on international Aid budget: Will hit 0.7% target next year, but will not rise above that level.