Hammond no longer on track to balance budget, says OBR

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£30bn of extra spending and tax cuts is money chancellor might have saved for a rainy day, says Treasury forecaster

Philip Hammond will allow the government’s spending deficit to rise next year as he seeks to pay for the first round of extra NHS spending and a series of measures that will “bring an end to the era of austerity”.

The chancellor sanctioned a rise from 1.2% to 1.4% in the annual deficit between this year and 2019/20 as he sought to honour promises made by the prime minister to boost spending on health, local authority housing and a freeze on fuel duty.

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