George Osborne’s plan to cut the UK’s budget deficit has been shattered by the revelation that the government will have to borrow as much as £75 billion more than it had originally planned over the next five years.
A fiscal forecast from the Office of Budget Responsibility (OBR) has revealed that the UK’s economic outlook is much bleaker than the government has let on. The coalition aimed to reduce the deficit in 2015 to £40 billion, but the latest figures show that it will actually be almost £100 billion.
The OBR forecast may force Osborne to admit that the government’s austerity plans to reduce the deficit are far off track in his autumn statement due on Wednesday.
The report suggests that the total borrowing figure will be revised upward, with the complete budget deficit expected to be £280 billion by 2020. The figures show that the UK will have a deficit of £75 billion more than previously expected.