Osborne extends UK austerity into 2018

Chancellor George Osborne has announced an extension of the UK fiscal austerity programme until 2017-2018 as the government failed to meet some of its debt targets.

Giving the Autumn Statement this afternoon, Osborne said there is a "better than 50% chance" of eliminating the structural deficit in five years' time, but admitted some targets would not be met as quickly as had been promised. The Chancellor said the deficit is forecast to fall this year, with or without the impact of the forthcoming transfer of the £35bn worth of QE purchase proceeds from the Bank of England to the Treasury. Taking into account those proceeds but not the transfer of Royal Mail pension scheme assets, the Office for Budget Responsibility forecasts the deficit will fal...