Today, Osborne will have to admit there’s a £50 billion hole in public finances

Today George Osborne will give his final Autumn Statement before the General Election next May. In it, he’ll have to admit the there’s a £50 billion hole in public finances.

The Telegraph (£) has reported that it looks as if Osborne’s plans to reduce the deficit have failed because the Coalition haven’t raised as much money from tax revenues as they hoped. This is because although the number of people who are unemployed has decreased, most of those who have moved into work are in low-paid jobs and therefore do not have to pay tax (the tax free allowance is at £10,000).

Similarly, not as much money has been raised from North Sea oil revenues as expected, nor from stamp duty, due to the poor state of the housing market.

In light of this, its reported that the Office for Budget Responsibility will say the deficit is bigger than first thought in 2010. Osborne is therefore expected to say today that in order for him to meet his deficit elimination target by 2017, the Government will have to make £25 billion more savings – which most likely will come from further cuts to welfare spending.

Turns out, then, that Osborne’s not the safe pair of hands he claims to be…