Jeremy Hunt’s debt reduction plan ‘a very big fiscal risk’, says OBR

Treasury's independent forecaster says uncertain spending plans and higher than expected inflation could scupper cuts

Government plans to reduce the UK's debt mountain by restricting Whitehall spending are among the biggest risks to the outlook for the public finances, according to the Treasury's independent forecaster.

The Office for Budget Responsibility (OBR), which predicts the impact of economic trends and government spending decisions on the public finances, said the uncertainty surrounding the government's spending after next year and higher than expected inflation meant there was a risk that planned budget cuts to debt in five years' time would be dashed.