In 2010 government spending took up 45% of national income, which was "unsustainable", says the chancellor. Today it accounts for under 40% and is forecast to reach 36.5% by the end of the Spending Review, he says.

BBC personal finance reporter Kevin Peachey tweets:

Deficit is to be 3.9% of national income this year, then 2.5% in 2016-17 and 1.2% and 0.2% in subsequent years, before moving to surplus of 0.5% in 2019-20 and 0.6% the following year, Mr Osborne tells MPs.

The implications of abandoning the tax credit cuts mean that the government will breach its welfare cap in the first years of the Parliament. But they will meet it later in the Parliament, George Osborne adds.

George Osborne says the government will reach a surplus of £10.1bn by the end of the Parliament - more than he announced in his Budget.

He sums up: the deficit falls every year, debt share is lower in every year than forecast, borrowing down by £8bn.

George Osborne says the £4.4bn tax credit cuts will be scrapped altogether. He says he's listened to the concerns and decided not to press ahead with them. He can do this, he says, because of the "improved" public finances.

George Osborne says the UK will borrow £8bn less than forecast - "fixing the roof while the sun is shining" (another of his favourite catchphrases). It will also allow the government to reach a surplus while cutting less in the early years, he explains.

This was how George Osborne opened his Autumn Statement, telling MPs he aimed to create "economic and national security" for the UK.

The chancellor has set out debt and deficit forecasts:

• The OBR has recalculated its previous budget forecast to include housing associations to compare like-with-like
• On that new measure debt was forecast in July to be 83.6% of GDP but is now forecast at 82.5%, falling every year, down to 81.7% in 2016, and reaching 71.3% in 2020-21.
• This "improving" forecast is because the OBR expects tax receipts to be stronger and debt interest payments are expected to be lower, he explains.

George Osborne says his critics were wrong in 2010 - and they are wrong again now. He says the independent Office for Budget Responsibility forecasts that UK living stands and the economy will rise every year with "more than a million" more jobs created over the next five years.

World growth forecasts have been revised down, with the eurozone remaining a "persistent problem". George Osborne says these are "yet more reasons" to protect Britain's economic security.

And what of the UK? Economic growth is predicted to grow by 2.4% in 2015; 2.5% in 2017 returning to 2.4% in 2018 and 2.3% in 2019-20.

George Osborne starts to rattle of some facts and figures. He tells MPs that since 2010 no G7 economy has grown faster than Britain.  "This will be an economic recovery for all in all parts of the country," he says.