Budget surplus hopes rely on 'high level of net migration to UK'

Office for Budget Responsibility analysis indicates chancellor's hopes of achieving surplus appear at odds with policy of reducing net migration

George Osborne's hopes of securing a budget surplus by the time of the next general election rest on continuing high levels of net migration to Britain, the Office for Budget Responsibility has made clear.

The OBR's latest economic and fiscal outlook published on Wednesday renews its finding that net migration has a positive impact on the British economy and says that a "high level" of net migration of 265,000 a year will fuel growth by 4.5bn by 2019-20 and 6bn by 2020-2021.

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