Autumn Statement: Unions unimpressed by George Osborne's spending announcements

"In the last five years, George Osborne has failed on his own terms and can now only claim to be trying to fix an economy he himself has broken.

"It is clearer than ever that stripping billions of pounds from our economy in the name of austerity is a political choice, not an economic necessity, and it is not working."

Roy Rickhuss, leader of the steelworkers' union Community, said there was little hope for the steel industry in the speech, adding: "We want to see the UK steel industry survive long enough to benefit from planned infrastructure spending and the apprenticeship funding announced today. However the future of the industry is at risk now.

"Crowing about the Northern Powerhouse only adds insult to injury to the thousands of our members in Redcar, Rotherham, Scunthorpe and North Lanarkshire, who are already jobless or who are facing an uncertain future."

David Hillman, spokesperson for the Robin Hood Tax campaign, said: "With George Osborne cutting budgets to the bone, it will be ordinary people who will once again pay the price for the financial sector's mistakes."

Unison general secretary Dave Prentis said nearly three million working families had breathed a "collective sigh of relief" over the move not to press ahead with cuts to working tax credits.

"Since the cuts were announced in the summer, parents have faced increasing anxiety over losing the tax credits they rely upon so heavily.

"We're pleased that the Chancellor has made good use of the thinking time last month's Lords vote gave the Government.

"But the real credit for today's decision goes to the many brave parents who talked publicly about their already stretched finances, and the distress and hardship the cuts would cause. Their stories convinced the Government this unfair tax credits grab was wrong."

Matthew Reed, chief executive of The Children's Society, said: "The Chancellor has made the right decision in abandoning his plans to cut tax credits for working families. Children would have been the biggest losers had these deeply unfair cuts gone ahead and we welcome this reversal.

"But, while the Chancellor has done the right thing by dropping these cuts today, he also needs to do the right thing tomorrow. Too many struggling low-income families are already stretched to the limit."

John Longworth, director general of the British Chambers of Commerce, said: "Once again the 'builder' Chancellor has used the tools at his disposal to create a Statement that the majority of businesses will applaud. The OBR forecasts gave the Chancellor more room to move than was predicted, so this wasn't the doom and gloom Spending Review that most people anticipated.

"We are delighted that the Chancellor has used this opportunity to listen to business on infrastructure, particularly on repairing our broken road network. This will help move people and goods more efficiently across the country, which will help businesses to grow."

Brian Berry, chief executive of the Federation of Master Builders, said: "George the Builder will need a new generation of 'real' builders to make his vision for housing a reality.

"We're already seeing housing developments starting to stall because the cost of hiring skilled tradespeople is threatening to make some sites simply unviable. Unless we see a massive uplift in apprenticeship training in our industry, there won't be enough pairs of hands to deliver more housing on this scale.

"That's why we're keen for the Government to tread carefully when applying the new proposed apprenticeship levy to the construction industry."

John Allan, chairman for the Federation of Small Businesses, said: "Given the tight constraints that the Chancellor was working to, small businesses will be pleased that he has listened to their concerns.

"Mr Osborne has managed to fund areas that drive productivity and long-term economic growth, such as skills and our science and innovation base."

Paul Kenny, GMB general secretary, said: "The Government has missed an opportunity to expand the tax base of the economy to pay for the public services valued by the public.

"Everybody knows that the adult care sector is facing a huge funding crisis. Mr Osborne has passed the buck to the whim of local authorities rather than face up the fact that the Government itself has the responsibility to fund the care of the elderly and other vulnerable adults."

Dot Gibson, general secretary of the National Pensioners Convention, said: "The social care system has suffered £4.6 billion worth of cuts since 2010, and the Chancellor's plan to allow local councils to raise additional spending will be nowhere near enough to address the problem.

"Already over one million older people no longer get the help they need at home, staff turnover is high, the quality of care is sometimes questionable and there is a distinct lack of dignity in the system for both staff and residents."

Rachael Orr, Oxfam's head of UK poverty, said: "We're delighted that the Chancellor has listened to concerns and removed the immediate threat of tax credit cuts from families working hard to keep themselves above the breadline.

"The Government should use the breathing space this announcement gives them to amend their plans for universal credit so that poor families are protected when it is introduced in 2020."

Len McCluskey, Unite general secretary said: "Like some economic Dr Frankenstein, George Osborne is conducting some wild experiment on the UK economy and the living standards of the British people.

"We have never before been in a place where a chancellor will pursue a surplus for no evident economic gain. This was a spending review that reflected his zeal not Britain's ideals which will hurt businesses and people struggling to make ends meet."

TUC general secretary Frances O'Grady said: "The Chancellor has been forced into a spectacular climb-down on tax credits, but by the end of the Parliament many working people will still suffer big losses because he is keeping planned cuts to Universal Credit.

"It's good to hear the Chancellor talk about industrial policy, but the real test is whether he acts to save Britain's steel, which is the foundation for more successful manufacturing and our balance of trade. Setting up a race to the bottom on corporation tax and business rates is no substitute for ministers rolling up their sleeves to protect jobs and industries, just as they do in Germany and France."

Brian Rye, acting general secretary of construction union, Ucatt, said: "This was deeply depressing. In Conservative Britain those who have, are getting a leg up while for the rest, services we rely upon in order to make life worth living are disappearing.

"The Chancellor is slashing at the fabric of society and simply does not care about the long-term damage he creates".

Sam Smethers, chief executive of the Fawcett Society, said: "The Chancellor's tax-credit U-turn is a win for women, particularly those on low incomes and single parents who would have been hard-hit by those changes, but universal credit changes are to go ahead - so effectively families and women in poverty will still lose out when those changes are implemented."

Gingerbread chief executive Fiona Weir said: "Both Gingerbread and campaigners up and down the country who have fought hard to overturn the planned cuts to tax credits should be pleased at the outcome. However, this announcement only covers the first phase of tax credit cuts, due to kick in next year.

"Single parent families on universal credit will still suffer cuts to the support they receive if the planned reduction in the work allowance goes ahead."

Carolyn Fairbairn, the CBI's director general, said: "This was a good spending review for longer-term investment in the economy but there's a sting in the tail in the size and scope of the apprenticeship levy.

"Businesses will be pleased to see the Chancellor staying the course on deficit reduction, his commitment to an industrial strategy, and the emphasis on nurturing a vibrant business community.

"Business recognises there are tough choices to be made in balancing the books, but many are reaching a tipping point, where the cumulative burden of the living wage, apprenticeship levy and business rates risk hurting competitiveness."

Liberal Democrat leader Tim Farron said: "This was a deeply political budget from a deeply political Chancellor.

"It looks good in the theatrics of the Commons, with Labour divided, weak and inept, but the budget will unravel.

"It will unravel in schools next year when they see funding slashed; it will unravel when local councils have to cut services and increase taxes just to get by; and it will unravel when projects can't be built because of the skills shortage caused by the attack on further education.

"The brighter outlook has given Osborne room for manoeuvre, yet he continues an ideological crusade to slash spending and attack working families on welfare.

"Today, was supposed to be a long-term economic plan, but it was a short-term economic scam."