OBR blames cuts for errors

THE UK’s fiscal watchdog, the Office for Budget Responsibility (OBR), yesterday said government spending cuts are not the most likely explanation for low growth.

The OBR addressed errors in its overly optimistic previous forecasts yesterday, suggesting that external inflation shocks, weak export demand and tight credit conditions were the more likely culprits for the UK’s poorer-than-expected economic performance.
The organisation added that post-crisis uncertainty had made growth harder to forecast.