The Latest Breaking News from OBR

The deficit was slightly lower than the £5 billion forecast by City economists and some said it could give Jeremy Hunt scope for a limited tax giveaway

Chancellor says government must not alter course as interest rate rises add to cost of debt

More than 100 companies are set to send a letter to the PM voicing fears about the disastrous effects of Britain’s overreliance on gas

City comment: The OBR forecasts are meant to help us avoid apocalypse, rather than to seriously predict it

Government’s debt level ‘unsustainable’ without tax rises or cuts, suggests watchdog

So, the government has gone with option 1, sub-section c: accept the recommendations of the pay review bodies – with mostly no new money. This neatly avoids higher borrowing, inflation or taxation (more on that later), but means cash must be found from existing department budgets not exactly flush with…

Gloomy report says national debt could exceed 300% of GDP within next 50 years

UK GDP report for May shows that factory output and construction shrank during the month, with some blaming extra bank holiday

Inflation and borrowing costs make it less likely PM will be able to tackle debt or cut tax