Tax evasion crackdown will generate an extra £1bn, while welfare reforms will save £4bn, says chancellor

A big theme in today's spending round was "fairness". The burden must fall on those with the broadest shoulders, says Osborne. Citing statistics from the IFS, he defended his approach towards making the richest pay their fair share, noting that in every year of this parliament, a greater proportion of income tax revenues have come from the wealthiest than under Labour.

Cracking down on tax evasion will generate a further £1bn in income tax revenues, he adds.

At the other end of the scale, Osborne says he's found £4bn worth of savings in welfare through a series of reforms. While welfare has already been capped at the individual level, it will now be capped at a system level. If any government looks to breach the cap, the OBR will issue a warning. Housing benefits, tax credits and disability allowances will all be included in the cap. Notably, state pensions will be exempt.

Those who want to claim jobseekers allowance will now need to turn up with a CV and wait seven days before claiming. To help them find work, they will need to turn up every week (rather than every fortnight) and be given more time with advisers and a three-weekly progress review. In addition, if claimants don't speak english, they will need to attend a language course to continue to receive benefits.

However, there are concerns that the seven day waiting period will hit the most desperate, prompting further accusations that Osborne is out of touch.