An Extra Year Of Austerity Foreseen For Britain

Alongside the atement on Wednesday, the Chancellor's Autumn Statement on Wednesday, the Office for Budget Responsibility (OBR - the independent fiscal watchdog) are set to tell George Osborne that the Government's efforts to reduce borrowing are in danger.

The OBR are expected to warn this week that the Chancellor looks set to miss his target for bringing down Britain's debt mountain; raising the prospect of more austerity measures.

Unless the Chancellor puts forward further hardship measures, Economists - alarmed by just how difficult it seems for the debt-ratio to begin decreasing in the foretold timescale of 2014-15 and 2015-16 (which Mr Osborne set to reduce GDP) - warn that Mr Osborne's goal for reductions to the gross domestic product were totally underestimated. This means the Chancellor's duel debt-reducing targets are more at risk because of the low growth-estimates and their knock-on impact on the Treasury's revenues.

"When the OBR was established in 2010 I said that the evidence of its success would come when a Chancellor of the Exchequer wished it had never been set up. I think that moment is approaching..."

Sir Alan Budd, chairman of the interim OBR, Sunday Telegraph 02/12/12

As if things aren't bad enough! The outcome being an extra year of hardship is foreseen for British citizens .