A chilling message of lengthening austerity from George Osborne left East Anglia largely out in the cold today.

The chancellor warned that Britain will face very low economic growth of under 1pc next year as well as this, and that a double-dip recession could be unavoidable if the leaders of the Eurozone cannot resolve their current crisis. And having fallen behind schedule in his deficit-cutting fiscal programme - because of lower than expected growth hitting tax revenues and increasing welfare payments - he extended the squeeze through to 2016-17, the other side of the next general election.

Despite the setback to his policy, Mr Osborne rejected any idea of abandoning his Plan A and easing its constraints. On the contrary, they were reinforced when despite - or because of today's strikes over pension changes - he announced in his 'autumn financial staement' that a two-year public sector pay freeze will be followed by two years of annual pay increases being restricted to an average of 1pc.

The government was 'committed to take Britain safely through the storm' he said, and was offering 'leadership for tough times'. He dismissed the Labour alternative as 'a quack doctor offering a miracle cure'.

The chancellor lightened the mood a little by cancelling the 3p per litre increase in fuel duty due in January and pushing it back to August when it was to have been raised by a further 2p. The effect will be that duty will then become 3p rather than 5p higher than now.

Mr Osborne also confirmed a �5bn boost in infrastructure spending over the next three years, topped up by a further �1bn Network Rail spending guaranteed by the government. In the East of England, he said, there would be 'immediate improvements' to the A14 in Cambridgeshire. And a new rail route from Norfolk to the West Country avoiding London will be opened up by his commitment to the building of a line between Oxford and Bedford via Milton Keynes.

The government is also 'identifying' over 500 infrastructure projects we want to see built over the next decade'. It was confirmed that 125mph Intercity Express trains are to be introduced on the line between King's Lynn and London King's Cross from 2018. And the New Anglia local enterprise partnership welcomed an announcement that Great Yarmouth and Lowestoft have been named as a national centre for Offshore Renewable Engineering.

In a speech of about 50 minutes, the chancellor also affirmed that rail fare increases due in January will be cut to inflation plus 1pc, that free nursery care for two-year-olds from less well off families will be extended, that a scheme of almost �1bn to tackle youth unemployment will be introduced and that projects to help first-time home-buyers and to make it easier for medium and small firms to get credit will be brought in.

Not only the basic state pension but also 'working age' benefits will be raised by 5.2pc in line with the September consumer price index. But some tax credit increases will be restricted, and the raising of the state retirement age from 66 to 67 has been brought forward to 2026 - eight years early.

Many of these policy initiatives had already been announced or leaked, however. And all 'good news' was overshadowed by the general and substantial blackening of Britain's economic prospects.

For Mr Osborne there was particular pain in having to admit that government borrowing this side of the election is now forecast to be about �100bn more than was predicted in March, and that - even if the Eurozone doesn't collapse - he won't then be able to tell the electorate that he has succeeded in balancing the books.