Definitely not the end of austerity

The Chancellor’s surprise windfall from the Office for Budget Responsibility (OBR) allowed him to do everything he wanted in last week’s Spending Review and Autumn Statement – and more. Indeed, it is rather peculiar how fiscal policy is being driven by the OBR’s spreadsheet changes. But the Chancellor should be wary – what the OBR gives with one hand in a forecasting round, it can just as easily take away with the other in the next.