The Office for Budget Responsibility (OBR) underestimated government borrowing by £60billion in recent forecasts, the watchdog has admitted.
A report evaluating the accuracy of its recent economic forecasts found that its March 2023 and March 2024 budget projections underestimated annual governmental borrowing.
The Times reports the OBR also underestimated the impact the payroll tax hike would have on growth.
The inaccuracies have been partially blamed on higher than expected inflation and interest rates, adding to debt interest and welfare spending.
Continuing effects on energy prices from the Russian invasion of Ukraine in 2022 were also more significant that anticipated.
The OBR said it had adjusted its “analytical and modelling toolkit" to prevent a repeat of forecast inaccuracies caused by the war in Iran.
FSTE100
The UK's flagship share index, the FTSE 100, was up 8 points at 10,371 shortly after opening this morning.
Brent crude oil futures were up 1.67%, sitting at $97.60 a barrel this morning.
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