George Osborne has defended his economic plans after criticism that he is set to plunge Britain into a period of austerity not seen since the 1930s.
The Chancellor grabbed headlines with the historic stamp duty reforms he announced, but cuts of £60bn to non-protected areas like police, local government and justice will be required in the coming years if he is to meet his targets, the government spending watchdog said.
He told Sky News his plan to clear the deficit by 2020 was "balanced".
Mr Osborne said: "We're taking a number of years because I think that's the right pace. The path we're on has given Britain not just the fastest growing economy in the world, but it means...you've got real world evidence that we've got the right long-term plan."
The stamp duty changes that could cut £4,500 off the cost of an average home have come into force - a move welcomed by thousands of buyers.
Detailed verdicts from leading financial experts will be delivered later on all the contents of George Osborne's Autumn Statement.
But the Chancellor's shake-up of stamp duty was the most eye-catching policy.
He has scrapped the "slab rate" of stamp duty - which means huge increases in tax when house values enter a new band.
In future, he said, the tax would apply progressively, like income tax.
The new rates will see house-buyers pay 0% on the first £125,000 then 2% on the portion up to £250,000, 5% up to £925,000, 10% up to £1.5m and 12% on anything above that.
First-time buyer Martin Gaine, from west London, said the change could save him as much as £4,000 on his prospective purchase.
"It's a lovely surprise because it wasn't trailed in any of the newspapers," he told Sky News as he viewed a two-bedroom flat in Chiswick, on the market for £600,000.
"Stamp duty is a big outlay and it's an up-front cost that you don't get back so this is brilliant news. Every little bit helps at the moment, so to save that money will be fantastic for me."
Mr Osborne told the Commons: "It is a fair, workable, lasting reform to the taxation of housing."
The changes will cost the Treasury "nearly £400m" over the next four months, according to the Office for Budget Responsibility (OBR).
The Chancellor also announced a plan to cut the cost of air travel for millions of families by abolishing air passenger duty for children under the age of 16 over the next two years.
On the controversial issue of the deficit, Mr Osborne was cheered by his own MPs and jeered by the opposition as he revealed better-than-expected figures.
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Gallery: Stamp Duty: How Much Will You Save?
Homes bought for under £125,000, such as these terraced houses, are unchanged by the new rules and buyers still do not have to pay any Stamp Duty
Someone choosing a typical three-bedroom semi-detached costing £185,000 would pay £1,200 instead of £1,850 under the old rules - a £650 saving
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