Union leaders accused the Chancellor today of being ''wildly out of touch'' with the lives of millions of people and of refusing to change unpopular policies.
Public and Commercial Services union general secretary Mark Serwotka said George Osborne's plans were ''miles off course''.
He added: ''Two years ago we said austerity wouldn't work and we were right. It didn't work then and it won't work now, but the Chancellor is refusing to change track, presenting a smoke-and-mirrors statement that will do nothing to boost our ailing economy.
''Such a toxic combination of arrogance and economic illiteracy would be laughable if it wasn't so serious, if real people's lives and communities weren't being torn apart by this Government's failed policies.''
Paul Kenny, general secretary of the GMB union, said: ''Osborne is in denial that the economy is making progress and that the cuts are hitting people in a fair way.
''He says that austerity will last until 2018 but he is likely to be sacked by the electorate well before then for stalling the recovery he inherited.''
Dave Prentis, general secretary of Unison, said: ''Today's statement is more proof that the Chancellor neither knows nor cares about what ordinary working people in this country are going through.
''The austerity agenda means that families across the country have even less to spend on everyday essentials, while tax winners at the top have more. Raising personal tax allowances is small beer for families facing rising food and energy bills.''