OBR Chair: Chancellor Has ‘Tiny’ Headroom for Tax Cuts

The independent budget watchdog has poured cold water on pre-election tax cuts, saying the chancellor only has a “tiny” headroom compared to risks. Richard Hughes, chair of the Office for Budget Responsibility (OBR), told peers on the Economic Affairs Committee that the projected £13 billion headroom is well within the margin for forecasting error. He also said current policies on borrowing are not sustainable in the long run, with the next five to ten years being a “window of opportunity” to address demographic and other issues. It comes as Chancellor of the Exchequer Jeremy Hunt drops hints of tax cuts in the spring budget, most recently at the World Economic Forum and in an article published this week....