Shock UK deficit figures dent George Osborne's economic plan

Gap between state spending and revenue is worst in October for six years with economists warning chancellor will need further austerity or miss annual target

George Osborne's deficit-cutting drive has been dealt a blow ahead of next week's spending review after official figures showed the worst October for the public finances in six years.

The deficit, or the gap between what the government spends and takes in, swelled by 16% from a year earlier to 8.2bn in October, according to the Office for National Statistics (ONS). It was a larger shortfall than the 6bn forecast by economists in a Reuters poll.

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