Autumn Statement: OBR says deficit 'shrinking more slowly'
Austerity measures will be extended to 2012 as the forecast for the economy has worsened.
The Office for Budget Responsibility revised down its projections for GDP growth as the chancellor delivered his Autumn Statement.
Chairman of the Office for Budget Responsibility Robert Chote said some of the factors reducing growth were cyclical rather than structural, and so may be recoverable.
Mr Chote also confirmed that the government is "on course" to meet its fiscal mandate of eliminating the structural current deficit in five years time.
- 5 December 2012
- BBC News