Noting that state spending is to be 36.5% by 2020 - down from 45% in 2010, BBC political editor Laura Kuenssberg says it's a "very significant" reshaping of the balance of the economy.

Analysing the chancellor's speech, she says there were "big climbdowns" on tax credits - which, she says, is a "big victory" for those campaigning against the cuts - and not going ahead with cuts to police budgets.

This killed off two of Labour's strongest attacks on the government, when the Opposition so far not been very effective at putting George Osborne under pressure, she adds.

In the Commons Conservative Andrew Tyrie, who chairs the Commons Treasury Committee, calls on the government to take "every opportunity to tighten the finances now while we have that chance". George Osborne replies "We've got debt falling in every year of this forecast."

David Hillman, spokesperson for the Robin Hood Tax campaign, said "ordinary people" would "once again pay the price for the financial sector's mistakes", with public service budgets "cut to the bone". 

Roy Rickhuss, leader of the steelworkers' union Community, said there was little hope for the steel industry.

Labour MP Frank Field thanks the chancellor for "good news" on tax credits. He calls on George Osborne to move to a "tax credit system that reflects the new world of higher wages" by 2020.

Autumn Statement policy decisions will boost the UK's short term economic growth "because the pace of fiscal tightening has been eased", the Office for Budget Responsibility (OBR) says, external. But the decisions will weigh on medium term wage growth because "employers are assumed to pass most of the cost of the apprenticeship levy onto their employees", the UK fiscal watchdog says.

Time now for some reaction to the chancellor's Autumn Statement.

Mark Serwotka, general secretary of the Public and Commercial Services said public services would be "torn to shreds" by the cuts.

George Osborne calls Labour a "deadly threat" to the economy and the country. He claims John McDonnell and Jeremy Corbyn have brought Labour "to its knees" while the government will "keep our country safe".

"The shadow chancellor literally stood at the despatch box and read from Mao's Little Red Book!" Chancellor George Osborne responds, joking that "half the shadow cabinet had been sent off to re-education".

The shadow chancellor did not have the Tory front bench's full attention, it seems:

Shadow chancellor John McDonnell accuses the government of "systematically dismantling all those aspects of society that make our communities worth living in". He says Labour would cut the deficit "fairly and effectively" and "invest to grow".

A cap on housing benefit to private sector levels is "not surprising", says Anthony Lee, Head of Financial Viability Advisory Services at BNP Paribas Real Estate. But it's "bad news" for housing associations, he says: