Autumn Statement and Spending Review: What to expect from George Osborne

The Chancellor will present his Autumn Statement and Spending Review to the House of Commons on Wednesday.

A wide range of issues will be covered in the mini-budget, from tax credits and pensions to housing and defence.

Here, we look at what to expect from the day.

  • What are the Autumn Statement and Spending Review?

The Spending Review sets out how public money will be spent across government departments, such as the NHS and schools, over the course of the Parliament.

The last Spending Review was in 2013 - they happen whenever the Government decides - and this year it will be combined with the Autumn Statement.

The Autumn Statement provides an update on the Government's plans for the economy, much like the Budget, which usually happens around March.

The Spending Review sets out how public money will be spent. Credit: PA
  • What will happen on the day?

George Osborne will give a speech to MPs explaining how he is spending the public's money and present the Spending Review and Autumn Statement to Parliament.

He is due to begin his speech at around 12.30pm, after Prime Minister's Questions.

Once the Chancellor has made his speech, the Opposition will be given a chance to respond.

  • What is the Chancellor expected to say?

As with many big political speeches, choice details have been leaked ahead of the day, so much of what Mr Osborne says will come as little surprise to many.

He will set out how he intends to slice £20 billion from spending and £12 billion from welfare - as well as raising £5bn in a crackdown on tax avoidance - to meet his commitment to balance the nation's books in five years.

He has already said that the transport, local government and environment departments - as well as the Treasury - have reached a deal to cut their spending.

The Chancellor will submit his plans to Parliament. Credit: PA

While the Chancellor will no doubt still have some surprises in store, here is some of what he is expected to say.


The Chancellor has vowed to push on with plans to reform tax credits despite the proposals being blocked by the House of Lords last month.

Mr Osborne has said he will take steps to mitigate the impact of the reforms, which it has been estimated will cost families an average of £1,100.

Setting out how he intends to do this will be a central part of the speech.

Chris Ship: How will the Chancellor fix the £4 billion tax credits black hole?


Mr Osborne has already announced he will be fast-tracking £3.8bn of funding to frontline services after coming under pressure from NHS England chiefs.

The move has been welcomed but critics are concerned it may lead to cuts to services that support the health service such as social care.

The Chancellor will set out his plans for social care services and the NHS in his speech.


A commitment to meet the Nato target to spend 2% of GDP on defence will allow a £12bn rise in funding for military equipment, bringing the total to £178bn over the next decade.

The Government has already made a number of announcements this week in the Defence Review.

These included investing in two new 5,000-strong "strike brigades", two additional Typhoon squadrons and increasing the size of deployable armed forces to 50,000 by 2025.

The basic state pension will rise to £119.30 a week from April 2016. Credit: PA


The basic state pension will rise to £119.30 a week from April 2016.

Mr Osborne will highlight the £570 a year rise in his Autumn Statement.

He is also expected to announce details of a new "flat rate" pension for those reaching state pension age after April 6, 2016.


Plans for 400,000 new homes in England are expected to be unveiled.

Measures include direct funding for developers and a change in planning rules to open up land for the creation of 200,000 new starter homes with a 20% discount for first-time buyers under 40. Around £2.3bn has been earmarked for the properties, which will have a maximum value of £250,000 outside of London and £450,000 in London.

Funding totalling £4 billion will go to housing associations, local authorities and the private sector to provide 135,000 Help to Buy shared ownership homes by 2021.

The Government will also invest £200m in 10,000 homes that will be available to rent at around 20% below the market rent to allow tenants to save for a deposit while they rent.

Around 8,000 specialist homes for older residents and people with disabilities will be built using £400m of funding for housing associations and the private sector.

Plans for 400,000 new homes in England are expected to be unveiled. Credit: PA

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