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
Responding to the UK Government’s Autumn Statement, the First Minister Carwyn Jones welcomed the extra capital funding but warned that Wales still faces some very difficult spending decisions.
– First Minister Carwyn Jones
It is good to see the UK Government have listened to our call for extra infrastructure investment – we have been pressing the case for some time and are pleased that they have responded.
Despite this extra money, it must be remembered that our capital budget in 2014-15 will still be 39% lower in real terms than it was in 2009-10. The fact is we will still be experiencing deep cuts that will only hinder us in our attempts to boost economic growth.
The reality of this Autumn Statement is Wales is still facing a very tough public spending environment for years to come
Shadow Welsh Secretary has criticised George Osborne's spending announcements as 'smoke and mirrors' disguising cuts which will hit low-earners in Wales hardest. He gave his reaction to our Political Editor Adrian Masters.
Plaid Cymru's Treasury spokesman, Jonathan Edwards, says the Autumn Statement represents an admission that the Chancellor's 'austerity experiment' has failed. He said:
This Autumn Statement is a humiliating climb-down for a Chancellor in denial who is now being forced to admit the failure of his austerity experiment.
Missed debt and deficit targets coupled with the OBR’s downgrading of forecasts have exposed the Chancellor’s lack of a long-term strategy for growth and he is now presented with a golden opportunity to reverse the downward spiral which is rapidly leading to increased and institutionalised poverty and unemployment.
Mr Edwards went on to criticise as 'self-defeating' the decision to fund extra money for capital projects by cutting the budgets of nearly every Whitehall department.
The announcement on capital investment is also to be welcomed, but for this to be funded via extra austerity will be self-defeating. We also have grave concerns over the introduction of regional pay for teachers – a deeply damaging policy that The Party of Wales warned against in our 2011 manifesto.**
Welsh Secretary David Jones has been telling our Political Editor Adrian Masters that the Chancellor has given the Welsh Government exactly what it asked for in his Autumn statement. He said he hoped Welsh Ministers would spend the money on improving transport links across Wales.
And he rejected the suggestion that a reduction in the main budget for Wales meant the UK Government was giving with one hand and taking away with the other. He described it as 'a marginal reduction.'
ITV Wales Political Editor, Adrian Masters, says six hundred and forty thousand pensioners in Wales will benefit from an increase in basic state pensions.
The increase has just been announced in the Chancellor's Autumn Statement.
Also as a result of spending in England the Welsh Government is set to receive an extra £52 million according to the Wales Office.
Chancellor announces plans to push ahead with regional pay for school teachers. Pay is not devolved to Wales although education is.
Chancellor’s statement on roads is England-only. Negotiations still going on re m4.
Newport announced for next phase of superfast broadband.
Wales' First Minister has made a fresh plea to Chancellor George Osborne for more capital investment funding.
Carwyn Jones has joined forces with Northern Ireland's First Minister Peter Robinson, Deputy First Minister Martin McGuinness and Scotland's First Minister Alex Salmond to make the plea ahead of today's Autumn Statement.
The ministers say that an injection of funding for new business ventures would "support the recovery and help bolster economic confidence".
Adding that they have employed a "variety of innovative measures" to increase funding for major public infrastructure projects but these cannot "fully offset" the cuts from Westminster or their impact in the three countries.
In a statement the ministers said:
"Increasing capital investment by simply cutting departmental budgets will not achieve the increase in demand in the economy that is so urgently needed. This investment must be additional.
This afternoon's Autumn Statement provides the UK Chancellor with an ideal opportunity to invest in growth, support the economic recovery and help bolster economic confidence."