CHANCELLOR George Osborne has today made a U-turn on tax credits and stated there will be no more cuts to police budgets. 

The announcements were made in his Autumn Statement and Spending Review. 

Cumbria police has been bracing itself to lose more than £31m in funding, prompting a petition to save the force from what have been described as potentially crippling losses.  

It had been thought that up to £11.5m could be cut from the Cumbria police budget following the Autumn Statement, but that now will not happen. 

Cumbria Police and Crime Commissioner, Richard Rhodes said: “I am relieved that the police budget has been spared further cuts.

“We now need to have a transparent debate with the Home Office on the principles of the funding formula in order to protect policing in the county.

“Meanwhile I would like to take this opportunity to thank the people of Cumbria for their support. 

"It is only by working together that we can get our voice heard.”

The policing grant is the main income stream and accounts for nearly two-thirds of the county's overall budget.

Chief Constable Jerry Graham said: “We welcome today’s announcement on the protection of police budgets at this time, which will help us to continue to effectively police Cumbria following the savings we have already made.

“Over the next few weeks we will begin planning budget forecasts for the coming years, this will still be subject to the outcome of the delayed police funding formula consultation.”

Speaking in the House of Commons, Mr Osborne said: "Now isn't the time for further police cuts. Now is time to back our police and give them the tools to do their job. 

"I'm today announcing no cuts in the police budget at all. The police protect us and we are going to protect the police."

Mr Osborne said that further police savings would need to be made nationally, with different forces to "merge back offices" and "share expertise".

A new government fund will be created to help with that reform. 

Mr Osborne also announced he is to scrap planned cuts to tax credits for millions of low paid workers.

The tax credit announcement means millions of low paid workers will not now have their benefits cut in April, as the chancellor had originally planned before he was forced to think again by the House of Lords.

Commenting on tax credits, Barrow and Furness MP Woodcock said: "It's a big win for Labour and for everyone who has campaigned for a re-think on tax credits and that will be a big relief for many families.

"However, my concern is the effect of significant cuts in the overall health budget and the impact it might have on services locally as we go into the winter period, which is a period when there has been crisis in previous years and they are braced for a difficult spell."

Other key announcements:

:: Mr Osborne told the Commons welfare savings totalling £12 billion will be "delivered in full... in a way that helps families".

:: The Government will borrow £8 billion less than forecast and spend £12 billion more on capital investments.

:: The NHS is to deliver £22 billion efficiency savings in England and Department of Health to cut 25% from its Whitehall budget.

:: The Chancellor confirmed a commitment to £10 billion real terms increase in the health service budget delivered in full, with the first £6 billion delivered up front next year. NHS budget to rise from £101 billion today to £120 billion by 2020/21.

:: An additional £600 million will be spent on mental health.

:: There will be an additional £1.5 billion for local authorities by 2019/20 through the Better Care Fund.

:: Mr Osborne said basic state pension is to rise by £3.35 next year to £119.30 a week.

:: Savings credits are to be frozen at the current level.

:: The Department for Transport operational budget will be cut by 37%, but transport capital spending to increase by 50% to £61 billion.

:: The £15 million raised each year from VAT on tampons to be used to fund women's health and support charities.

:: Investment of £23 billion in school buildings and 600,000 new school places, with 500 new free schools and University Technical Colleges.

:: Total financial support for education and childcare to increase by £10 billion, and new national funding formula to be introduced for schools from 2017.

:: Spending on single intelligence account to rise from £2.1 billion to £2.8 billion by 2020/21 and defence budget from £34 billion to £40 billion.

:: Overseas aid budget to increase £16.3 billion by 2020.