"The big economic numbers in the Autumn Statement are catching up with the reality of the last six months - a double dip recession in Europe and a weaker global backdrop than expected. Today's borrowing data confirm the toxic effect of low growth on the government's finances. The Chancellor has sensibly decided to spread the fiscal squeeze over a longer period than to try to make up for lost ground now with still more tightening. He is sticking to Plan A, but it will take an extra year, to 2017, for the UK's debt burden to start to fall.
"Progress has been made. The deficit has fallen by a third from its 2009 peak and the government has a good chance of hitting its main target of eliminating the deficit by 2017. Yet the UK is only half way through an eight year programme of austerity. 70% of the planned tax rises have already taken effect, but 70% of the cuts to public spending still lie ahead.
"For the wider economy the worst is probably past. The independent Office of Budget Responsibility and most other forecasters expect the economy to grow modestly next year. However, for now, at least, this looks like a choppy, fragile recovery."
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