Economy concerns as household debt rises to £40bn in latest figures

Labour accuses George Osborne of 'risky behaviour' as Office for Budget Responsibility forecast shows decline from 67bn surplus in 2010

Families are expected to run up 40bn of debt this year, sparking fears about Britain's economic recovery.

Labour raised concerns that millions of households would face "serious hardship" if interest rates rise and warned the borrowing trend could harm the economy.

Related: George Osborne's economic miracle is built on a mountain of personal debt | Owen Jones