The Autumn Statement: more revenue cuts, cheaper fuel, and new trains for the North

The Chancellor declared that investment transport is needed to get both productivity, and tax receipts, up

The Chancellor declared that investment transport is needed to get both productivity, and tax receipts, up

The DfT and local government face at least two more years of "very substantial savings," Chancellor George Osborne said in his final Autumn Statement before the General Election.

In contrast, Osborne said that low business productivity required more capital investment in transport and other infrastructure. He hailed his 'Northern Powerhouse' idea and as part of this announced that new franchises for Northern Rail and the TransPennine Express would require an end to the old Pacer trains, as the Deputy Prime Minister had urged. Invitations to tender will be published early in the New Year.

He claimed that the National Infrastructure Plan was attracting more private investment. He was open to further devolution deals with conurbations and cities like Manchester's, which gives it a devolved transport budget and backing for introducing bus franchising. There will be a £7bn investment in the 'Northern Powerhouse,' partly for transport. The statement reveals that other city areas have come forward with devolution proposals, which include proposed new combined authorities.

There will be a further £1bn - from the previously announced £12bn Local Growth Fund - for a second wave of growth deals to support projects to boost local economies.

Osborne also found the cash to continue the long-running freeze in fuel duty, which the Government says has boosted economic growth, and to announce he was scrapping air passenger duty for children. And as expected, rail commuters will get fares capped at the rate of inflation in the General Election year.