IFS warns market turmoil could leave black hole in George Osborne's plans

Share price falls, low oil prices, Brexit and volatile tax receipts just a few factors that may force chancellor into deeper spending cuts or tax rises to reach budget surplus

Britain's leading experts on the public finances are warning that the turmoil on global stock markets threatens to leave a 2bn black hole in George Osborne's deficit-reduction plans that could force the chancellor to raise taxes or make fresh cuts in spending to hit his budget targets.

On a day in which share prices crashed in Europe and the US, the Institute for Fiscal Studies said Osborne's plan to put the UK back in the black by the end of the current parliament was vulnerable to a protracted financial market panic.

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