Autumn statement: 4G licence money already spent

George Osborne says he is using the proceeds from the 4G licence auction for spending on new projects including numerous further education colleges, even though the bidding has not yet started.

Mr Osborne has valued the licences at £3.5bn, using the money to fund spending rather than make further cuts.

The licences are estimated to sell for between £3bn and £5bn, but Ofcom's reserve price for them is just £1.3 billion.