Danny Shaw
BBC Home Affairs Correspondent

Finding savings and fending off cuts has dominated the policing debate in England and Wales for more than five years.

It was widely anticipated the Spending Review would confirm the need for police efficiencies would remain at the top of the agenda, at least until 2020.

The Home Office is not one of the favoured "protected" ministries shielded from cuts.

When the announcement came, towards the end of Mr Osborne's statement, that there would be no further policing cuts, there was genuine disbelief, mixed with delight.

Kevin Hurley, Surrey's PCC, described the atmosphere as "euphoric", as though England had won the World Cup.

Essex Chief Constable Steve Kavanagh held his hand over his mouth in shock. "I'm aghast," he said.

At moments such as this, journalists reach for the official documents to look at the small print. Could it really be true?

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The RAC has said that any rise in the rate of fuel duty would "go down like a lead balloon with motorists who have been benefitting from lower pump prices as oil prices have fallen".

Fiscal watchdog the Office for Budget Responsibility (OBR) says it expects fuel duty rates to rise in line with retail prices index (RPI) inflation from April 2016 onwards - rates having been frozen since March 2011.

But it also says there have been "repeated decisions" to cancel planned duty rises in recent years.

The OBR also expects fuel duty receipts to rise by £200m per year over its forecast period due to lower oil prices - with a drop in pump prices boosting fuel duty receipts.  

Ross Hawkins
Political correspondent

Householders are set to pay £2.7bn more in council tax, despite a Conservative manifesto promise to help keep council taxes low.

Some local authorities will be able to raise council tax by up to 2% to pay for social care. Ten police and crime commissioners will also be given greater powers to raise council tax bills.

In their assessment today the OBR writes: “Receipts from council tax are expected to be around £2.7 billion higher in 2020-21 than in our July forecast. Around £2.2 billion of this reflects the Autumn Statement announcements.”

In the Conservative manifesto, under the headline promise ‘we will help keep your council taxes low’ the party said: “Under this Government, average council tax bills in England have fallen, in real terms, by 11 per cent. Whereas Labour wants to propose a new tax on family homes, we will help local authorities keep council tax low for hardworking taxpayers, and ensure residents can continue to veto high rises via a local referendum.”

The Daily Politics

BBC News Channel

Put to him that, given the millions of deaths in China during Chairman Mao's leadership, many would not see it as a joke, he responds: "Yes of course, and I condemn all that."

Has he read the Little Red Book? Laughing, he replies; "No, only that section I quoted to him."

John McDonnell says today is the day George Osborne promised that the deficit would be eliminated, but it is currently more than £70m. He's failed in his fiscal targets, he adds.

Asked about his Mao moment, the shadow chancellor rejects the idea it backfired. He says he was trying to make a point about the chancellor selling off UK assets to the Chinese.

BBC News Channel

"We're claiming it as a victory," says Labour's shadow chancellor John McDonnell over the tax credits reversal. But he says there's some "devil in the detail", too, fearing that families will lose out from other welfare cuts.

BBC News Channel

Where does today leave George Osborne in the Conservative Party leadership stakes? Conservative peer Lord Lamont thinks he’ll have recovered the “dip in his ratings” but adds that “everything will depend on how the economy grows”.

BBC News Channel

Lord Lamont, former Conservative chancellor, tells the BBC George Osborne was "quite right" to abandon the tax credits cuts. He says the chancellor had to make many decisions over the past few years, and sometimes you get one wrong.

Labour's Lord McFall, who used to chair the Commons Treasury Select Committee, said Mr Osborne was "up against a wall with no exit" and so had to abandon the plan. He says "a lot of detective work" was needed now to work out where the chancellor has taken the axe to public spending.

Laura Kuenssberg
BBC political editor

The lucky chancellor. Neither the slasher, nor the saver, but a politician who has found good fortune and surprisingly so.

The official state of the country's books is remarkably improved, in just a few short months

So, George Osborne has for now, not just enough room to wriggle, but to make big, dramatic moves. And with that comes steady progress in his pet political project, pulling the Conservative party to the centre of politics.

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Former Labour shadow chancellor Chris Leslie, commenting on the moment his successor, John McDonnell, produced Mao's Little Red Book in the Commons, told the BBC:

Tom Barton
BBC Look East political reporter

Image source, PA

More detail on George Osborne's offer to allow Police and Crime Commissioners to increase the police precept. This offer will only apply to the 10 forces currently charging the smallest amount to council taxpayers. They will be allowed to increase their precepts by £5 a year for an average Band D property.

If all 10 forces apply the full increase it will raise a total of about £11m per year.

The 10 forces that are set to benefit are:

• Northumbria
• West Midlands
• West Yorkshire
• Sussex
• Essex
• Kent
• Hertfordshire
• South Yorkshire
• Greater Manchester
• Cheshire.

It is "right" concerns of local government have been listened to says Lord Porter of the Local Government Association.

However it is "wrong" that despite extra financial powers local services will still face deeper cuts.

He says local government has "led the way at finding innovative ways" to save money over the past five years, but that further savings will be harder to find. 

The Daily Telegraph

"What I want to know is: how did it happen? Did John McDonnell, external dream it up in private by himself? Or was it discussed – and, inexplicably, approved – in a meeting with his advisers?"

That's what the Telegraph's sketchwriter Michael Deacon is asking about the shadow chancellor's decision to quote from Mao's little red book. He observes:, external

BBC News Channel

OBR chief Robert Chote says there’s about £27bn of lower borrowing over the next four years which gives George Osborne “some money to play with”. He says the government is likely to have to spend less on debt interest over the coming years, which helps as well. There's also been good news on tax receipts.

But, he adds, share prices are lower and there are fewer transactions in the property market, meaning less revenue from stamp duty land tax.

Is this just down to good luck, rather than economic stewardship? There are a lot of contributory factors, Mr Chote replies.

Today's announcement on business rate measures did not come as a surprise says lawyer Richard New. But he adds there is "great concern" it will "enhance" the divide between the North and South of the country.