Autumn Statement: George Osborne 'Stubborn' and Economically Illiterate

Osborne issued a direct plea to the unions, set to strike on November 30, over changes to public sector pensions he said are "fair".

"Call off the strikes tomorrow. Come back to the table. Complete the negotiations and let's agree generous pensions that are affordable to the taxpayer," he said.

This statement coupled with the cap on pay rises will be seen as an attack on the unions and their two million striking members.

"None of the Chancellor's post-election assumptions have turned out to be true," said Brendan Barber, General Secretary of the Trades Union Congress (TUC).

"Growth has stalled, the Eurozone has crashed, the structural deficit is bigger than previously thought and unemployment continues to rise as the private sector fails to take up the public sector slack. 

"The Chancellor's stubborn determination to stick to his plan A despite the evidence that it is not working and won't work in the future means that we are locked into permanent austerity."

Dave Prentis, General Secretary of the UK's biggest union, UNISON, also hit out at Osborne and the government.

"Our recovery is as non-existent as the Chancellor's apparent understanding of economics," he said.

"Growth has stalled, and experts are predicting the double dip will hit. What will it take for the government to realise Plan A is failing?
 
"We desperately need to get Britain spending. A bad situation will only be made worse by imposing a £3.6billion tax on public sector pensions, by holding down public sector pay, and by throwing hundreds of thousands of public service workers onto the dole."