John Cridland, CBI Director-General, said:

"This autumn statement works with the realities of today and provides an imaginative framework for UK businesses as it strives to secure growth and jobs. This is "Plan A plus" in all but name.

"The downgraded forecasts and outlook were no surprise, but the Eurozone crisis is still hanging over us. The Government's dogged commitment to budget deficit reduction remains the only way to maintain the UK's triple A credit rating and low interest rates on international money markets."

Commenting further, Mr Cridland added:

On the economy:

"Given the continued uncertainty in the Eurozone, the downgrades to the UK's economic forecasts reflect the current difficulties. Growth will stall through the winter and economic conditions will be weak for some time.

"With spending plans unchanged over the period of the parliament, the Chancellor is sticking to Plan A, and we welcome the reallocation of spending on infrastructure.

"Debt will peak at a higher level than previously thought but will still be declining by the end of the parliament. The Government is still able to meet both fiscal rules and protect credibility in sovereign debt markets, which is so critical to private sector confidence."

On infrastructure: