David Willetts, chair of the Resolution Foundation, has said that the think tank has taken Office of Budget Responsibility forecasts, and worked out what they mean for families:

People on benefits will be hit by a squeeze on earnings more, as growing inflation will mean their income is worth less, says David Willetts, chair of the Resolution Foundation.

He said there were "welcome measures" in the Autumn Statement including an increase in the minimum wage, and a taper on the rate Universal Credit is withdrawn, but that those measures were "useful", but not enough to offset inflationary price rises.

A report by the Resolution Foundation has found that the squeeze on living standards during this parliament could be worse than between 2010 and 2015.

Lower earnings and higher inflation could mean incomes growing less than half as fast between 2015 and 2020 compared to the years following the financial crisis and the recession that followed.

David Willetts, chair of the Resolution Foundation, says:

"What our analysis shows is that as earnings are going to be going up less, given the economic slowdown, and because prices are going to be going up more because of the fall in the value of the pound, put that together and average earnings are going to be about £860 a year less at the end of this parliament than was previously forecast."

The "pain is going to be spread across all earnings", but will hit the less well-off more, he adds.

Image source, PA

The outlook for family finances is a "grim picture" with little respite from measures announced in the Autumn Statement, a think tank says.

Image source, Getty Images

Lufthansa's pilot strike has cost the German airline about €20m (£17m) and resulted in almost 2,000 cancellations, a board member said today, external.

The walkout over pay and conditions began at midnight on Wednesday and is due to run until Friday.

"Not only have we suffered severe damage, but we're also noticing from mid-term booking numbers that customer behaviour is changing [for the worse]," Harry Hohmeister said.

This is the fourteenth strike at Lufthansa since 2014. According to the IW Cologne Institute for Economic Research, walkouts cost the carrier about €222m in 2014 and €231m in 2015.

You have to go through a slick PR machine to get time with Gareth Williams. But once you reach him, it’s like having a chat with a friendly, unassuming bloke down the pub.

Which is how his company was founded. Gareth Williams thrashed out the original idea for Skyscanner with two university friends in a pub back in 2001.

A passionate skier, he was frustrated by the time it took to sort through potential flights.

The company’s headquarters in the heart of Edinburgh, Scotland are a vast, dark, mirrored edifice.

And there is an air of secrecy within the building - I was strictly not allowed to film any screens with live data that might reveal their secret sauce for crunching flight availability and travel data.

Interestingly, the Skyscanner team is very keen to play down the label of being a “unicorn” - that is a company that investors value at more $1bn.

Forget that, they told me. They were more keen to talk about their actual revenues from customers, their rate of growth and their next generation work with automated bots.

Perhaps that’s what sealed the deal with Ctrip this week.

Image source, Pets at Home

Pet care firm Pets at Home has reported a 9.1% rise in first-half sales driven largely by its vet business.

Revenue leapt 47.6% in the division, which runs vet practices across the UK, boosted by new TV and marketing campaigns.  

Demand for pet food and accessories also climbed, up by 4.7%.

Chief executive Ian Kellett said: "In a more difficult trading environment, we continue to build Pets at Home for the future and are confident in the long term outlook for our unique offer in the resilient pet market -i n particular, the developing potential of our services business."

Most Asian stock markets fell on Thursday on concerns that US interest rates will rise next year.

Investors fear that Donald Trump’s pro-growth policies will dampen investor interest in emerging markets and push up the cost of dollar-denominated debt.

Hong Kong's Hang Seng index closed 0.3% lower at 22,608.49 points, while South Korea’s Kopsi dropped 0.84% to 1,971.26.

The broadest index of Asia-Pacific shares outside Japan, the .MIAPJ0000PUS, shed 0.4% although Japan’s Nikkei 225 bucked the trend, rising 0.94% to 18,333.41 points.

Image source, Getty Images

Risks to eurozone financial stability have grown, in part due to uncertainty over US economic policies, the European Central Bank has warned.

"The financial stability implications for the euro area stemming from changes in US economic policies are highly uncertain at this point in time. The euro area economy may be directly impacted via trade channels and by possible spillover effects from higher interest and inflation rate expectations in the US."

Political shifts may cause price volatility in securities, compounding existing eurozone vulnerabilities to rising interest rates and yields, it said.

In addition: "Higher political uncertainty may lead to more domestically focused, growth-hindering policy agendas," the ECB said.

"This, in turn, could delay much-needed fiscal and structural reforms and could in a worst-case scenario reignite pressures on more vulnerable sovereigns," it added. "In particular, concerns about debt sustainability might re-emerge despite relatively benign financial market conditions." 

London share indexes are trading lower this morning. The FTSE 350 index is down 0.11% at 3,761.73 points while big brother the FTSE 100 is down 0.12% at 6,809.76 points.  

According to Connor Campbell of Spreadex, the Chancellor's plan to ban upfront letting fees came as a "huge shock" to estate agents.

This morning Countrywide, the largest estate agent group in the country is down by a further 9.28%, Foxtons has fallen 1.66% and Savills is down 0.66%. A separate growth warning from Countrywide seems to have added fuel to the fire.  

Losses at baby goods retailer Mothercare widened significantly in the first half, but Matthew Tillett of Allianz suggests we shouldn't lose faith in the brand. 

China's biggest online travel agency, C-trip, is to buy flight search website Skyscanner, for $1.7bn.

The deal for the company - a market leader in Europe - adds to a series of global acquisitions by Chinese corporations expanding into foreign technology and services.

Skyscanner allows users to compare prices of air tickets, hotels and rental cars on hundreds of travel websites.

C-trip provides similar services in Asia, and says it has just bought two US tour operators that specialize in serving Chinese travellers.

Image source, Press Association

Consumer credit is growing at its fastest rate since November 2006, according to the British Bankers Association.

It’s latest High Street Banking Statistics show that while house purchase approval numbers were 10% lower last month than in October 2015, consumer credit is now showing annual growth of more than 7%.

That reflects strong retail sales growth and low interest, according to Dr Rebecca Harding, BBA chief economist. “Consumer confidence remains robust as borrowers take advantage of record low interest rates,” she said.

Image source, Getty Images

Gatwick Airport has said it will invest a record £250m in development projects this year, after Heathrow gained ministerial approval to build a third runway.

The investment is part of a wider £1.2bn capital plan that will include expansion of the north and south terminal departure lounges, and an overhaul of its railway station.

Gatwick said the six month period to the end of September 2016 was the busiest in its history with 25 million passengers - an increase of 6.3%.

Revenue was up by 8.1% to £445.2m while earnings before interest, tax, debt and amortisation climbed 9.8% to £264.5m.

The firm also said it had launched a number of new routes in the second half of the year, including Tianjin Airlines to Xi’an, China, and British Airways to Oakland in California.

Kamal Ahmed
Economics editor

The size of the challenge facing a chancellor who has pledged an economy "that works for everyone" is becoming increasingly clear.

And it is not just down to Brexit.

After an Autumn Statement which abandoned pledges to hit a government budget surplus by 2020, new analysis claims the squeeze on living standards could be worse during this Parliament than between 2010 and 2015.

The report by the Resolution Foundation says lower earnings and higher inflation could mean incomes growing less than half as fast between 2015 and 2020 compared to the years following the financial crisis and the recession that followed.

Read more here.

Mr Hammond defends his Autumn Statement, which some MPs have criticised as too gloomy.

Today Programme
BBC Radio 4

The government does not owe the country an apology for abandoning its fiscal targets, Philip Hammond says.

"When the circumstances change we have to respond to that and manage the economy to protect people's living standards and jobs." 

He describes yesterday's Autumn Statement as a "responsible package" including limited borrowing to boost productivity. 

BBC Breakfast

Earlier on BBC Breakfast Chancellor Philip Hammond was asked about the UK's growing debt, slower growth and imminent rises in food prices after the slump in the dollar.

Mr Hammond said: "Those are the facts. We do have a large debt, but there's no point focusing on the fact that we've got a large debt, we need to focus on what we're going to do about it."

He says the UK will "invest in our economy, grow our productivity, create more jobs, create economic growth in the future so that we can grow our way out of these challenges. That's the only sensible way to move forward."