A fiscal windfall allowed Osborne to slow the pace of deficit reduction and escape what had been expected to be a politically challenging moment for the Conservative government.
Yesterday's statement will boost Osborne in his ambitions to become Conservative leader and thus prime minister before 2020.
Shadow Chancellor John McDonnell's quoting Mao Zedong in his response to Osborne will heighten Labour MPs' concerns about their leadership.
The drive to reduce central government fiscal responsibilities is a key shift that could aggravate some centre-local government relations.
Government house building pledges could aid the Conservative candidate in May's London mayoral election, where the issue is important.
Economic policy risks such as interest rate rises and any need for new spending cuts appear to be shifting later in the parliamentary term.
