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- Chancellor had hoped to start running a budget surplus by 2019
- Research suggests it will now take a year longer to balance the books
George Osborne faces a £20billion black hole in the public finances that will mean austerity measures have to continue until 2020, it was revealed yesterday. The Chancellor had hoped to start running a budget surplus by 2019 but research on official documents suggests it will now take a year longer to balance the books.
Economic models used by the Treasury suggest that growth will not be good enough to eliminate part of the deficit.Mr Osborne has hailed buoyant growth as proof that Britain is on the road to recovery, but the Office of Budget Responsibility has downgraded its expectations about the potential for future growth. With unemployment falling quickly, the research shows firms may have little room to expand production rapidly.....Read more here