Chancellor George Osborne on a factory visit in Crewe
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Autumn Statement: Chancellor Osborne defends 'difficult decisions'

The Chancellor George Osborne has admitted there are more "difficult decisions" ahead as his forecasters say public spending is set to fall to levels not seen since the 1930s.

The Office for Budget Responsibility says 60% of the cuts needed to wipe out the budget deficit are still to come.

It predicts one million jobs will go in the public sector by 2020, but private sector employment will rise by almost double that.

Speaking to John Humphrys, from Radio 4's Today programme, Mr Osborne said Whitehall departments "had to live within their means".

Go to next video: Osborne defends his Autumn Statement