Autumn statement welcomed by building society

Mr Osborne also pledged £2bn to build 400,000 starter homes aimed at first-time buyers.

Mike Hanson, Vernon Building Society’s chief executive, welcomed both moves, hoping for a boost in the housing market.

Mr Hanson, pictured below, said: “The Chancellor’s U-turn on tax credits will certainly provide relief to the many families across Stockport and surrounding areas who would have otherwise faced significant financial hardship.

“The pledge of 400,000 affordable new homes will also be welcomed by the many potential first-time buyers who are increasingly struggling to find a footing on the property ladder.

“Additionally, a three per cent higher rate on stamp duty for buy-to-let and second homes is also expected to help alleviate pressure on the property market.

“Having said for some time that the Chancellor should use taxation to redress the imbalance of demand for buy-to-let housing without hurting first – or second – time buyers, I’m particularly pleased to see the selective application of stamp duty, though how this is enforced will be an interesting one to monitor.”

Mr Osborne also promised to create 26 new enterprise zones and abolish uniform business rates, giving elected mayors powers to raise rates.

The government will also give the incoming Greater Manchester mayor the power to implement a levy to support development and regeneration.

The levy would require the unanimous approval of all 10 Greater Manchester local authority leaders.

The government restated its commitment to improving public transport links between Manchester and the major northern cities to help drive the Northern Powerhouse idea.

Mr Osborne said: “This budget delivers what business needs including competitive taxes I’ve already announced including the reduction of corporation tax by 18 per cent.

“We are also helping 600,000 of small businesses, by extending small business rate relief scheme by another year.”

Mr Osborne also announced the Department for Business budget is being cut by 17 per cent.