SCHOOLS across Worcestershire face the prospect of a major cash boost - with a pledge to finally end their "unfair" funding plight.

George Osborne used today's Comprehensive Spending Review to announce that the current formula, which leaves county schools among the lowest funded in the UK, will be ripped up for a new one from 2017.

The Chancellor also said:

- Police funding will not face ANY cuts, a move which took West Mercia Police by complete surprise

- Controversial £4.4 billion of cuts to tax credits, which would have hit 22,300 county families from April, have been scrapped completely

- 400,000 new affordable homes will be built within a decade, a doubling of the original target, with all areas expected to take a burden

- Pensions will rise three per cent in 2016, the best hike in 15 years, with no changes to petrol or booze

The school funding announcement comes after years of fierce campaigning from Worcestershire pupils, parents, teachers and head teachers about the county languishing near the bottom for financial support.

The basic per-pupil funding is £4,231 compared to £5,218 in Birmingham, a startling £987 difference.

Mr Osborne today called it "unfair" and openly admitted the disparities had gone too far, telling MPs "systematically underfunded schools in whole swathes of the country" would be a thing of the past.

The current yearly funding packages will now be ripped up completely, to be replaced with a new 'National Funding Formula' from September 2017.

In January Education Secretary Nicky Morgan will start consultation with head teachers about the details.

The news has been leapt on by school heads and city leaders this afternoon, who say the time for change has come.

Sean Devlin, head teacher of Blessed Edward Oldcorne Catholic College in Timberdine Avenue, Worcester, said: "My first question is, why has it taken them so long to say this?

"But of course I'm very, very pleased.

"More money means we can do that little bit more for the children - you can have slightly smaller classes, you can offer that bit more help for those with special needs.

"A lot of heads had come to the view this would only happen right near the end of the parliament. It's really good news."

Mr Osborne used his Spending Review to praise MPs who have "campaigned long and hard" for change on school funding.

Although he did not name-check any specifically, Worcester's Robin Walker has been leading the charge for years.

This afternoon, Mr Walker said: "It's absolutely fantastic news.

"Delivering fairer school funding has been my main concern and although the details will come next year this is the go-ahead for what we've always wanted to see.

"It's hugely welcome and a better settlement than any of us were hoping for, to be honest."

BOOST FOR POLICE

POLICE forces across the country have been told that no cuts will be made to their funding - a shock move which caught MPs by surprise.

Mr Osborne also warned today that in return he expects many forces to look at "merging back office functions" to help save cash - something already being pioneered between West Mercia and Warwickshire.

The news on protecting funding up to 2019/20 comes after widespread expectation they would have to slash around 30 per cent off budgets to tackle the national deficit.

Today, West Mercia Police and Crime Commissioner Bill Longmore welcomed the steps.

"I will have to wait until the precise details of the figures and finances are processed to make a full and proper assessment," he said.

"On face value though and taking politics out of the equation, this seems to be very good news for the people of West Mercia.

"I've said for some time now that there was very little fat left to trim within policing locally, and I'm pleased common sense has prevailed.

"The formula grant from the Government is our biggest source of income, and there’s no doubt that further hefty cuts would have created a real and serious challenge for all police forces.”

"This news means that we can sustain the good policing service people currently get, and when all the finer details are ironed out, I hope it will provide a sense of comfort and security for many people, myself included."

Mr Osborne said yearly police grant funding will be protected in real terms, in other words it will line with inflation, with an additional £900 million being provided for forces.

TAX CREDITS U-TURN

CONTROVERSIAL plans to slash £4.4 billion from tax credits have been ditched - with the Chancellor performing a complete u-turn.

During his Spending Review he said an improvements in the nation's finances, including lower borrowing costs, meant it no longer had to go ahead.

More than three million people, including around 22,300 Worcestershire families with children, were due to be stung by the changes in April.

Mr Osborne insisted today that he would still remove £12 billion from the welfare bill by 2020, but would do so "in a way that helps families", telling MPs the tax credit cuts were not needed.

Social housing tenant Doug Padgett, 58, of Hathaway Close, Dines Green, who rents his property from Fortis Living, said: "It's very surprising but I think he's done it because he needs to increase his popularity.

"He knows we could being going to war again (in Syria) and needs to help people to get them on-side, so many people would have been annoyed by it.

"If people have less money in their pockets it won't do anyone any good."

Worcester Labour group's deputy leader Councillor Joy Squires, a former city parliamentary candidate, said: "Labour campaigned hard on tax credit cuts in Worcester and tried to get local Tories to join us in opposing the cuts at council only last week.

"They refused and staunchly defended the proposed cuts that would have affected 6,300 families in Worcester."

She accused the Conservatives of being “out of touch”.

But West Worcestershire MP Harriett Baldwin, who is also City Minister working in the Treasury, said: "This autumn statement delivers on the promise we made to working people in Worcestershire that we would put their security first."

Mid-Worcestershire MP Nigel Huddleston said he was "really pleased" by the schools announcement in particular.

"I pay tribute to Robin (Walker) and the f40 fairer funding campaigners on this, I know how long they've been asking for it," he said.

"I'm delighted. Given where Worcestershire stands now in terms of fairer funding I think it's unimaginable that we won't be better off under a new formula."

Worcester pensioner Ron Chambers, 69, one of many facing a pension rise of £174 a year, said he had mixed feelings about the spending review.

He said: “I don’t think the pension is enough, if council tax goes up what is a three per cent rise for us?

“Take a look around pubs these days and see how many old people go in there, there’s hardly any.”

The three per cent pension rise is the best since the year 2000.

OTHER THINGS YOU NEED TO KNOW

OTHER measures in the Spending Review included ramping up the pace of house building - with 400,000 affordable properties going up within a decade.

The target is double the previous figure announced in September and will be funded with a £2 billion kitty.

All eyes were also on councils, with local authorities responsible for social care able to 'up' council tax by two per cent from April to get in more cash.

The move is good news for Worcestershire County Council, where the leadership has already signalled it wanted a 1.9 per cent rise.

In return the yearly support grants will be phased out and replaced by a new funding system allowing councils to keep all their business rates, a proposal first unveiled in the summer.

The NHS faces having to make £22 billion in what Mr Osborne called "efficiency savings" today, although in return he promised a £10 billion 'real terms' increase in the health service budget this parliament.

Overall NHS spending will rise from £101 billion today to £120 billion by 2020/21, and an extra £600 million will go on mental health.

Mr Osborne is still aiming to get Britain's public finances into a surplus by 2020, saying better tax income and lower interest payments means the nation can borrow £8 billion less and spend £12 billion more on infrastructure over the five years.

It gives fresh hope that bids for extra money, like the £70 million needed to dual Worcester's A4440 Carrington Bridge, stand a better chance of being successful.

Councillor Simon Geraghty, who leads Worcester City Council and is the deputy leader the county council, said: "The new spending on infrastructure is great news, it means Worcestershire as a whole can expect to tap into some of that money."

Louis Stephen, who chairs Worcester Green Party, said: "With winter looming we need a properly funded social care sector."

Judi Brazkiewicz, Chairman for the Federation of Small Businesses in Worcestershire, said: "One of the highlights for many of our members is the extension of the doubling of Small Business Rate Relief in England for another year. 

"However, there was no mention by the Chancellor on retail relief and the Government’s decision to abolish the uniform business rate along with measures to devolve rates powers to local authorities may provide concerns for us,

"The Chancellor’s decision to focus on housing though is generally good for small businesses as those looking to attract and retain skilled workers depend on housing being available in their area."

Mr Osborne also said today he will raise an extra £1 billion a year by 2020 from a new three per cent stamp duty charge on buy-to-let properties and second homes.

Meanwhile, women’s charities will receive £15 million a year from the so-called “tampon tax” – the VAT levied on sanitary products.

During today's Spending Review, which lasted just over an hour, Shadow chancellor John McDonnell accused George Osborne of "sheer economic illiteracy" and quoted Chairman Mao.

Mr McDonnell produced a copy of the Chinese Communist leader's Little Red Book after claiming public assets were being sold to the Chinese government.

He also attacked austerity and claimed a Labour victory over police cuts.

Mr Osborne said Labour was a "deadly threat to the economy", adding "half the shadow cabinet have been sent off to re-education" during bizarre scenes.

* See our live coverage on this from earlier today HERE.