Chancellor George Osborne's key phrase today was 'economic security first' as he introduced his Spending Review, which sets out what Government spending will be over the next 4 years, and his Autumn Statement - an annual update on the economy today.
Much had been said about the impact of cuts in the welfare budget culminating in a House of Lords defeat on Tax Credits so it was not a complete surprise that the planned cuts of £4.4 billion in Tax Credits were abandoned.
Overall day to day Government departmental spending is to be cut by £20 billion. However police, health, education, international aid and defence budgets are protected whilst transport, environment and energy are the biggest losers.
Some of the highlights directly affecting contractors and small businesses included:
Plans to enable local authorities to retain all business rates collected. A proviso is local involvement in business initiatives.
The full budget review can be found here.