The numbers in the Chancellor's statement show a far weaker economic picture than the government had hoped for and some heroic assumptions.
George Osborne has this lunchtime delivered his Autumn statement. Set out below is a brief summary of the impacts it will have on Wales.
Welsh politicians are watching closely as George Osborne's latest spending plans are unveiled
Ahead of the Chancellor's Autumn Statement this afternoon the Institute of Directors in Wales has issued an overriding message that he must stick to his fiscal targets, whilst ensuring the transport and energy infrastructure and tax system provide a firm basis for economic recovery.
– Robert Lloyd Griffiths, director of the IoD in Wales
George Osborne is in a difficult position. The global economy has been much rockier over the last two years than most expected; growth has been weaker and public borrowing higher than we hoped.
Some would like The Chancellor to abandon his targets and embrace bigger deficits, but he must hold his nerve. It's only through controlling public debt that Britain will retain the confidence of the markets and create strong foundations for recovery.
The Chancellor, George Osborne, is expected to deliver his Autumn Statement this lunchtime.
The Statement provides an update on the Government’s plans for the economy based on the latest forecasts from the Office for Budget Responsibility.
Amongst the key points expected to be announced are deeper cuts to the welfare budget and the planned 3p fuel duty rise in January will be postponed until August.
Earlier this week, the Chancellor admitted it is taking longer to tackle the problems with Government finances than expected but said he would be sticking with his deficit-reduction programme despite being unlikely to meet his own targets on public spending.