George Osborne has announced a commitment to health in the Autumn Spending Review, but continues to look for £22 billion of efficiency savings from the Department of Health.

£6 billion of additional funding for the NHS will be given up-front next year. The NHS has been supported, said Mr Osborne, in “the largest investment in the health service since it’s creation.” Government has “fully funded the NHS” he said in his speech to Parliament.

New funding for social care will be raised by a new 2 per cent levy applied by local authorities on the community charge that could amount to £2 billion. Social care spending will rise in real terms, said the Chancellor.

In general, public spending will be cut each year from £756 billion to £721 billion by 2020. Savings and efficiencies made so far mean that ‘in real terms’ cuts to government departments of an average of 2 per cent in recent years will fall moving ahead to 0.8 per cent, he suggested.

For businesses, corporation tax is cut to 18 per cent and business rates rules will be changed to give local councils the power to cut rates, to make their area more attractive to businesses. It is planned that greater local power around the country will be driven by 26 further enterprise zones.

Government predicts that the economy will grow to 2.4 per cent in 2016, 2.5 per cent in 2017, 2.4 per cent in 2018 and to 3.9 per cent by 2020. “The whole economy is set to grow faster than any other economy in the world” over the next few years, claimed the chancellor. Borrowing is hoped to be lower than expected, however manufacturing output continues to slow, and the country needs to be economically prepared ‘for the inevitable storms that lie ahead’, he suggested.

Small businesses will benefit from a rate-relief scheme for one more year.

Government plans a ‘digital revolution’ in administration. For example, it is planned that businesses will have a digital tax account that can be managed online.

Some additional support was announced for childcare for working families with young children. Three million apprentices by 2020 and will introduce a new apprenticeship levy for business. This is described as “A huge reform to raise the skills of the nation.”

Overall, government has introduced a ‘long term economic plan for our country’s future’ and a vision of “a country with a surplus that lives within its means”, said Mr Osborne.