Public services face five-year 'rollercoaster', OBR chairman says

Robert Chote says consumers will provide momentum in coming term as chancellor's amended austerity cuts put pressure on state-funded enterprises

Public services face a "rollercoaster" ride over the next five years, the government's fiscal watchdog has predicted, after George Osborne trimmed his austerity plans in the budget.

The Office for Budget Responsibility has made radical changes to its public finances outlook after Osborne used his pre-election budget to scrap plans that would have meant the biggest squeeze on public spending since the 1930s by the end of this decade.