Chancellor of the Exchequer George Osborne has used his Autumn Statement, presented this morning, to announce a freeze on fuel duty.

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The Chancellor sought to take credit for modest economic recovery seen this year, after the UK appeared to be facing a slide back towards recession in March. Although this budget announcement marks the first positive economic outlook Osborne has been able to present, he insisted "more difficult decisions" lie ahead and made clear his intention to stick with harsh austerity measures that have marked the coalition's time in office.

The Office for Budget Responsibility (OBR), set up by the Chancellor in 2010, increased its growth forecast for this year to 1.4 percent. The OBR came in for criticism last year after consistently delivering over-optimistic forecasts, which had to be revised down.

As part of the measures announced by Mr Osborne, a planned 2p per litre increase on fuel duty will be scrapped – a move that will be welcomed by those living in rural regions. However, greens said that, taken alongside other measures including tax breaks for controversial fossil fuel companies, the Chancellor's announcement spells bad news for the natural environment. Shale gas fracking companies will benefit from a 50 percent tax cut on early profits.

Friends of the Earth's Executive Director Andy Atkins commented on Thursday, "Handing tax-breaks to climate-wrecking fracking firms simply highlights the fact that George Osborne hasn't done his homework: they won't lower bills, MPs say they are unjustified - and they could be illegal."

He continued, "Building a strong economy and protecting the environment are two sides of the same coin… The quickest and most cost-effective way to tackle rising energy bills, and end the scandal of thousands of people dying in heat-leaking homes, is to invest in a comprehensive insulation programme. But the Government has caved in to Big Six pressure and given energy efficiency the cold shoulder."

In his Autumn Statement, the Chancellor also announced a 2 percent cap on business rates and pledged to extend the rate relief scheme for small businesses. He said National Insurance contributions for workers under the age of 21 will be removed in a bid to boost youth employment.

Although small business advocates welcomed these measures, public sector and civil society groups warned that the Autumn Statement provided scant support for those suffering as a result of austerity and recession. Public sector cuts will continue, with government departments set to face cuts of £1billion each year until 2017.

Mark Serwotka, general secretary of the Public and Commercial Services union said, "Government departments, already struggling under budget cuts of up to half and the loss of tens of thousands of civil servants, will simply not be able to cope... This is not an economic plan, it's austerity for austerity's sake, as the Tories – propped up by the Lib Dems – look to reshape our society for years to come and make the poor, sick and unemployed pay for the greed and recklessness of wealthy elites."

"We desperately need investment in our public services, not more cuts, and a much more ambitious and determined plan to target the tax dodgers than this government is committed to."

This week, vets and landowners expressed concerns over the impact of cuts to publicly-funded bodies, for which they will have to take up the slack. Landowners fear that they will become increasingly liable under changes to water maintenance and flood defence introduced in the government's Water Bill, which coincides with drastic cuts at the Environment Agency. Vets warned on Wednesday that changes at AHVLA may weaken the country's ability to detect the threat of livestock diseases.

**Update 06/12/2013 14.15**

On Friday, the NFU welcomed the Autumn Statement, which its advisors said could have positive outcomes for farming. NFU chief economist Phil Bicknell commented, "Moves to freeze fuel duty rises and extend small business rate relief in addition to the previously announced employment allowance could all play a part in helping farming's profitability in the future."

However, he added, "There is also a missed opportunity here. It's frustrating that we're not seeing consideration of fiscal measures that incentivise SMEs like farmers to develop long term strategies and make consistent investment in their businesses. Whether it's farm buildings or on-farm reservoirs that help water management, the current system encourages a make-do and mend approach. By contrast, new investment on-farm would have significant benefits for local economies and particularly for the construction sector that is still 11.5 per cent smaller than it was in 2008 and remains under pressure."