Chancellor George Osborne delivered his autumn budget statement to parliament on Tuesday.
Following are highlights of the session, which will include updated growth and borrowing forecasts, as well as measures to stimulate Britain's economy.
ON POSSIBILITY OF A RECESSION
If the rest of Europe heads into recession it may prove hard to avoid one here in the UK.
WILL DO WHATEVER IT TAKES TO PROTECT UK ECONOMY
Much of Europe appears to be heading into recession caused by a chronic lack of confidence in the ability of countries to deal with their debts. We will do whatever it takes to protect Britain from this debt storm while doing all we can to build the foundations of future growth.
REINVIGORATING RIGHT-TO-BUY HOUSING POLICY
No government has attempted anything as ambitious as this before. With the strain on the financial system increasing, the important thing is to get credit flowing again.
We will use mortgage indemnities to help 100,000 families buy newly built homes. We are going to reinvigorate the right to buy.
We will bring it back to life, families in social housing will be able to buy their own homes with a discount of 50 percent and we will use the funds received to build more homes.
GROWTH FORECAST CUT
The central forecasts we publish today from the independent for Office for Budget Responsibility does not predict a recession in Britain, but they have unsurprisingly revised down their short-term growth prospects for our country, Europe and the world.
ON OBR FORECASTS
Our challenge is even greater than we thought because the boom was bigger, the bust was even greater and the effects will last even longer.
In addition to the euro zone crisis the OBR gives two further reasons for the weaker forecasts: First the internal inflation shock the result, in their words, of unexpected rises in energy prices and global agricultural commodity prices ... explains the slowdown of growth in Britain in the last 18 months.
Second, the OBR shows new evidence the bust was deeper and had even greater impact on our economy than previously thought. The result of this analysis is that OBR has significantly reduced assumptions about spare capacity in the economy and the trend rate of growth.
DEBT INTEREST PAYMENTS BELOW FORECAST
Because of lower market interest rates we have secured for Britain, debt interest payments are forecast to be 22 bln sterling less than predicted.
MUCH OF EUROPE HEADING FOR RECESSION
Much of Europe now appears to be heading into recession caused by a chronic lack of confidence of countries to deal with their debt.
STICKING TO DEFICIT REDUCTION
The crisis we see unfolding in Europe has not undermined the case for the difficult decisions we're taking, it has made that case stronger.
I am clear that our rules must be adhered to and I'm taking action to make sure that they are. The current structural deficit is forecast to fall from 4.6 pct of GDP this year to a surplus of 0.5 percent in 5 years' time.
I am announcing significant savings in current spending to make the fiscal position more sustainable in the medium and long term, but in the short term over the next three years we will use these savings to fund capital investments in infrastructure, regional growth and education as well as help for young people to find work.
NO EXTRA BORROWING
There is no need to adjust the overall total set out in the spending review. The measures I set out today require no extra borrowings and no extra savings.
We are adjusting those plans so we don't overshoot the (international aid)target.
The basic state pension will rise by 5.35 pounds, the largest ever cash rise in the basic state pension.
We will also uprate the pension credit by 5.35 pounds and pay for this by an increase in threshold of savings credit.
We will uprate working age benefits in line with cpi inflation of 5.2 pct.
PUBLIC SECTOR PAY
We are asking the independent pay review body to consider how public sector pay can be made more responsive to local labour markets. This is a significant step to creating a more balanced economy in the regions of our country without squeezing out the private sector.
I would once again ask the unions why they are damaging our economy. Call off the strikes tomorrow, come back to the table.
FUTURE PUBLIC SPENDING
I'm setting expenditure totals for 2015/16 and 16/17. Total managed expenditure will fall by 0.9 pct per year in real terms, the same as set out in CSR.
RAISING RETIREMENT AGE
Starting in 2026 we will increase the state pension age from 66 to 67.
Australia, America and Germany have all taken similar steps and by saving a staggering 59 bln stg it will mean a long term future for state pensions.
Next month we'll publish our response to the Vickers report.
It is not a tax on bankers it's a tax on people's pensions.
We've introduced a permanent bank levy to make sure banks will pay their fair share.
I need to raise the rate of the levy to 0.088 percent effective from January 1 next year.
(UK economics team)