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The Chancellors Autumn Statement, 29 November 2011.

In his crucial Autumn Statement, Chancellor George Osborne vowed the coalition would do everything possible to protect the UK from the "debt storm" engulfing the eurozone but warned it would be difficult to avoid a new recession if no solution is found.

The Chancellor outlined a series of measures aimed at promoting growth, helping struggling families and boosting business - including eye-catching freezes in fuel duty and limits on rail fare rises.

The Chancellor announced public sector pay rises are to be capped at 1% for two years, as he delivers his Autumn Statement.

The cap follows a two year pay freeze for public sector staff.

Mr Osborne also confirmed that UK economic growth would be lower, and borrowing higher, than was forecast during the Budget in March.

A planned 3p-a-litre rise in fuel duty in January has been cancelled and a further rise in August limited.

Plans to raise the state pension age from 66 to 67 would be brought forward up to ten years to 2026 but there will be a £5.30 increase in the basic state pension to £107.45, in line with the 5.2% inflation rise in September.

Pensioners receiving pension credit will also benefit from an increase worth £5.35. And "working age" benefits would also go up in line with the high inflation figure - contrary to earlier reports - which he said would be a "significant boost to the incomes of the poorest".

There will be a £50m fund for small business risk capital which will help companies setting up in the areas worst affected by spending cuts.

Investors supporting firms with fewer than 25 employees will be eligible for 50% income tax relief on the money they invest up to £100,000-a-year and will receive a one-year capital gains tax holiday.

Autumn Statement: At-a-glance summary of key points

Chancellor George Osborne has updated MPs on the state of the economy and the government's future plans in his Autumn Statement as the Office for Budget Responsibility (OBR) publishes its latest growth and borrowing forecasts.

2011 forecast revised down to 0.9% from 1.7%
2012 forecast revised down to 0.7% from 2.5%
In 2013, 2014 and 2015, forecast growth will be 2.1%, 2.7% and 3%

Extra £100bn in borrowing over four years
Borrowing forecast to be £127bn in 2011-2, falling to £120bn, £100bn, £79bn and £53bn in following years
Debt to GDP ratio to peak at 78% in 2014-5, falling afterwards

1% cap on public sector pay rises for two years after the end of current freeze next year
Review into regional pay adjustments
Rise in state pension to 67 to be brought forward to 2026 from 2036 at the latest under Labour plan

The planned 3p fuel duty rise in January to be scrapped, with the August 2012 duty rise reduced from 5p to 3p
Benefit payments uprated by 5.2% next year, in line with inflation
Basic state pension to rise by £5.35 to £107.45, pension credit to rise by £5.35
Below-inflation increase in some working tax credits
Above-inflation £110 rise in the child element of the child tax credit scrapped

Credit easing programme to underwrite up to £40bn in low-interest loans to small and medium-sized firms
£1bn business finance partnership to help secure funding for medium-sized firms
Regional Growth regeneration fund to get £1bn in extra funding
£250m support package for energy-intensive firms
Business rate holiday relief for small firms to be extended to April 2013
Bank levy to be increased in January

£1bn "youth contract" to subsidise six-month work placements for 410,000 young people

£1.2bn spending on school buildings. Cash for 100 additional free schools
£50 cut in water bills for families in the south-west of England
Childcare places for most deprived two-year-olds in England doubled to 260,000

Rise in regulated rail fares to be capped at 6.2% - 1% above inflation - in January, down from 8.2%

Mortgage indemnity scheme to help up to 100,000 people buy homes with 5% deposit.
£400m scheme to kick-start stalled construction projects in England
50% discount for social tenants wanting to buy their own homes

£5bn new spending over three years, including £1bn for the rail network
Go-ahead for 35 road and rail projects across England
Aim to unlock a further £20bn in investment from pension funds.

Funding will not exceed 0.7% of total GDP

In March, the OBR predicted the economy would grow 1.7% in 2011 and 2.5% in 2012, lower than previous forecasts.
It forecast government borrowing of £146bn in 2010-11, falling to £122bn in 2011-12, £101bn in 2012-3, £70bn in 2013-4, £46bn in 2014-5 and £29bn by 2015-16.

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