Spending Review: Ed Balls says 'living standards falling'

Shadow chancellor Ed Balls has responded to George Osborne's Spending Review announcement and said that "living standards are falling; year, on year, on year."

Millions of public sector workers will lose automatic annual pay increases as part of an £11.5bn cuts package being unveiled by Chancellor George Osborne.

Mr Balls went on to say, "His friends call him George, the President calls him Jeffrey, but to everyone else he is just Bungle".

The chancellor has set out spending cuts for 2015/16 forced on him by slower than expected economic growth and deficit reduction.

Labour has said it would not reverse the spending cuts announced for 2015/16.