George Osborne's cuts to proceed more slowly than anticipated

Cuts to departmental spending will be 1.1% a year rather than the previously planned 1.6%

George Osborne will press ahead with his attack on Whitehall spending over the next five years but at a slower pace than he signalled in the summer, following better than expected forecasts of tax receipts, lower debt payments and a sale of assets.

Cuts to departmental spending will be 1.1% a year rather than the annual reduction of 1.6% planned in the July budget, saving thousands of public sector jobs that were previously earmarked for the chop.

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