(Update) Autumn Statement: Osborne boosts housing, transport and NHS in spending review

In his first spending review for five years, Chancellor George Osborne confirmed the government will deliver a budget surplus by 2019, as he announced £12bn of welfare savings would be delivered in full.

However, Osborne made a giant U-turn on tax credits, alongside an increased state pension, measures to support the housing sector and rejigging of the NHS finances.

Earlier in his Autumn Statement, Osborne predicted the UK economy will grow by 2.4% in 2015-16. Looking ahead, the Chancellor said the economy is predicted to grow by 2.5% in 2016-17, returning to 2.4% in 2017-18 and 2.3% in 2019-20.

Describing the eurozone as a "persistent problem", Osborne said there were "yet more reasons" to protect the UK's economic security. New measure of net debt was forecast in July to be 83.6% of GDP, but citing the Office for Budget Responsibility, the Chancellor said this is now forecast at 82.5%, falling every year, down to 81.7% in 2016, and reaching 71.3% in 2020-21 on current projections.

Osborne also said the UK would borrow £8bn less than forecast "fixing the roof while the sun is shining." It will also allow the government to "reach a surplus while cutting less" in the early years, he added.

The Chancellor's housing market measures included support for the market, via a £2.3bn funding pledge and reform of the planning laws towards delivering 400,000 affordable housing starts by 2020-21, plus an extension of the Help-to-Buy and shared ownership schemes, a new London Help-to-Buy scheme, and higher stamp duty for those buying and selling second homes and buy-to-let properties.

In recognition of higher housing costs in the capital, the new London Help-to-Buy scheme will offer buyers with a 5% deposit a 40% equity loan, interest-free for five years.

On the NHS, spending in England will be upped by £10bn per year more in real terms by 2020-21 compared to 2014-15, but this comes with a demand that the service finds £22bn of efficiencies. Under the weight of considerable objection from the public, the House of Lords and his own back benches, the Chancellor said his previous proposal to cut tax credits will be put off until 2020.

Other areas to receive a boost included transport infrastructure, where the Department for Transport will have its operational budget cut by 37% but will dole out £46.7bn of capital investment over the next five years, including "the biggest road improvement programme since the 1970s and the largest programme of rail investment since Victorian times" as well as £250m for a new "pothole fund".