In such austerity measures, it is better to stay in the middle!

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Austerity is beginning to seem less like a project and more like a long-term state of affairs.

While delivering the Autumn Statement last week, Chancellor George Osborne declared that reducing the deficit would take longer than he thought initially as a drop in the public debt burden seems unlikely until 2017-18.

Along with “the legacy of a decade of debt”, he blamed the alarming figures on recession in the Eurozone, the slowing growth in China and the US fiscal cliff.

The economy has suffered a blown worse than the post-World War II and anxiety about recovery keeps businesses from investing. Even the best firms cannot be sure of getting credit, which hurts productivity.

The Chancellor of Exchequer said that the rich, professionals and people on welfare would withstand the worst of the latest changes.

The Government in fact, will take money from the better off and those on benefits, while trying to preserve the incomes of those in the middle.

The three-year welfare squeeze will hit those on income support, housing benefit, Jobseeker’s Allowance, child benefit and tax credit.

The welfare payments of working-age households will be uprated by only 1 per cent in the three years from April 2013.

Wealthy individuals will also hard-hit by a £1 billion-a-year raid on pensions.

The Office for Budget Responsibility (OBR) reckons GDP will contract by 0.1 per cent this year, compared with the 0.8 per cent increase it hoped in March and borrowing will be around £50 billion more than planned, over the next five years.

Despite declarations that there are no “miracle cures”, just hard work, Mr. Osborne found spare cash to make the life of motorists easier by abolishing the 3p fuel duty increase due next month and delayed until September a second rise due in April.

Meanwhile the economists also warned of more big cuts in public services including the police, defence, local government, environment and transport, if the Government continues to protect spending on the NHS and schools.