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 the 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.
We need to make sure interest rates are available to families and businesses. I've authorised an increase in the ceiling in the BoE's asset purchases to 275 billion pounds. This will support demands across the economy.
We are launching a major programme of credit easing to help small businesses. We have set a ceiling of 40 billion pounds of the enterprise finance guarantee scheme. At the same time I've agreed with Mervyn King that we will reduce by 40 billion pounds the asset purchase facility.
We are launching our national loan guarantee scheme. It will work on the simple principle that we use the low interest rate that the government can borrow at to reduce the interest rate that small businesses can borrow at.
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.
We are publishing the national infrastructure plan today. For the first time we're identifying over 500 projects we want to see built over the next decade. We're mobilising the finance needed to deliver them too.
We can today give the go ahead to 35 new road and rail schemes to support economic development.
The spending plans of the Department for International Development meant that the UK was on course to exceed 0.7 percent of national income in 2013.
That I don't think can be justified so we are adjusting those plans so we don't overshoot the target.
I've already offered another year's freeze in UK council tax and that will help millions of families. Train fares are set to go up well above inflation so the government will fund a reduction of 1 percent in fares and this will apply across national rail and London's tube and on London buses.
Despite all the constraints that are upon us we are able to cancel the fuel duty increase planned for January. Taxes on petrol will be 10 pence lower.
HELP FOR INDUSTRY ON GREEN POLICIES
We will give particular help for our energy intensive industries.
I am worried about the combined impact of green policies adopted by Britain and Europe on some of our energy heavy industries.
We will help them with the cost of the EU trading scheme carbon price floor. This amounts to a 250 mln stg package over the parliament and will keep industry and jobs here in Britain.
(UK economics team)