City responds to Autumn Statement

The Chancellor, George Osborne, has said that the UK government will need to borrow more money than previously thought and that growth forecasts for the UK have been downgraded.

In his Autumn Statement, Mr Osborne also said that public sector pay rises would be capped at 1% for two years, and announced the bringing forward of a rise in the pension age.

The markets gave a fairly muted reaction to the statement.

Louise Cooper from BGC Partners and Jane Foley from Rabobank International explain why.