OBR admits uncertainty over £27bn windfall behind tax credit U-turn

Independent forecaster concedes positive predictions could change as experts are sceptical that tax receipts will pick up as quickly as expected

The Treasury's independent forecaster has conceded there are big uncertainties in its predictions for higher tax revenues after the chancellor used the prospective windfall to justify a softer pace of cuts in his autumn statement.

The Office for Budget Responsibility said it now expects more money to flow into government coffers from income taxes, corporation tax and VAT than it did at the time of its last forecasts, at George Osborne's summer budget four months ago. The OBR also expects the government to gain some fiscal headroom thanks to lower interest payments on its debts.

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