Will Osborne's two Budget nightmares come true?

If the OBR forecasts a triple-dip recession and a higher deficit this year, the Chancellor's failure will be clearer than ever.

After a notable absence of Budget leaks, last night brought a slew of pre-briefed announcements. Today's Sun reveals that Osborne will scrap next month's 6p rise on a pint of beer and abolish the beer duty escalator, while the Guardian reports that he will announce an increase in the personal allowance to £10,000, a year ahead of schedule, and either delay or cancel the fuel duty rise. After last year's disastrous decision to abolish the 50p tax rate, brilliantly framed by Labour as the "millionaires' tax cut", all three measures are intended to signal that the Chancellor's priority is now reducing the cost of living for those famed "hardworking families". Osborne has wisely resisted calls from the Thatcherite right to abolish capital gains tax or slash corporation tax to an Irish-style 11 per cent - measures that would largely benefit the well-off. 

But what we won't get until the Chancellor stands up at 12:30pm are the Office for Budget Responsibility's updated forecasts for growth, borrowing and employment - and here's where the pain could lie for Osborne.

For the fifth time since it was established, the OBR is expected to downgrade its growth forecasts. Growth in 2013, which was predicted to be 1.2 per cent in the Autumn Statement, is now likely to be only half that amount. But the most important figure, for the Chancellor's immediate political prospects, will be that for the first quarter of this year. It is this number that will determine whether Britain has suffered an unprecedented "triple-dip recession". We won't get the first estimate from the Office for National Statistics until 26 April but a negative forecast from the OBR would make it far harder for Osborne to claim that "we're on the right track". A third recession in four years is the Chancellor's first nightmare. 

The second is a higher deficit. Until now, even as growth has disappeared, the Chancellor has been able to boast that borrowing "is falling" and "will continue to fall each and every year". But today, for the first time since he entered the Treasury, Osborne will almost certainly be forced to announce that the deficit is forecast to be higher this year than last. Even with the addition of £2.3bn from the auction of the 4G mobile spectrum, borrowing is currently £3bn higher than in 2012. As the OBR noted last month, "to meet our autumn forecast would now require much stronger growth in tax receipts in the last two months of the year than we have seen since December, or much lower-than-forecast expenditure by central or local government". Expect Robert Chote and his fellow number-crunchers to announce that fate has failed to favour the Chancellor. 

The combination of a shrinking economy and a rising deficit will add force to Labour's charge that austerity is "hurting but not working". With Osborne also expected to announce that the national debt won't begin to fall as a proportion of GDP until 2017-18 (two years behind schedule), even some Tory MPs are beginning to ask what all the pain has been for. 

To all of this, the Chancellor's inevitable riposte to Labour will be "but you would borrow even more!" One of the key tests for Ed Miliband (who, as leader of the opposition, will reply to Osborne, rather than Ed Balls) will be how or whether he seeks to rebut this charge.

Freddy Krueger from "Nightmare on Elm Street". Photograph: Getty Images

George Eaton is political editor of the New Statesman.

Photo: Getty
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UnHerd's rejection of the new isn't as groundbreaking as it seems to think

Tim Montgomerie's new venture has some promise, but it's trying to solve an old problem.

Information overload is oft-cited as one of the main drawbacks of the modern age. There is simply too much to take in, especially when it comes to news. Hourly radio bulletins, rolling news channels and the constant stream of updates available from the internet – there is just more than any one person can consume. 

Luckily Tim Montgomerie, the founder of ConservativeHome and former Times comment editor, is here to help. Montgomerie is launching UnHerd, a new media venture that promises to pull back and focus on "the important things rather than the latest things". 

According to Montgomerie the site has a "package of investment", at least some of which comes from Paul Marshall. He is co-founder of one of Europe's largest hedge funds, Marshall Wace, formerly a longstanding Lib Dem, and also one of the main backers and chair of Ark Schools, an academy chain. The money behind the project is on display in UnHerd's swish (if slightly overwhelming) site, Google ads promoting the homepage, and article commissions worth up to $5,000. The selection of articles at launch includes an entertaining piece by Lionel Shriver on being a "news-aholic", though currently most of the bylines belong to Montgomerie himself. 

Guidelines for contributors, also meant to reflect the site's "values", contain some sensible advice. This includes breaking down ideas into bullet points, thinking about who is likely to read and promote articles, and footnoting facts. 

The guidelines also suggest focusing on what people will "still want to read in six, 12 or 24 months" and that will "be of interest to someone in Cincinnati or Perth as well as Vancouver or St Petersburg and Cape Town and Edinburgh" – though it's not quite clear how one of Montgomerie's early contributions, a defence of George Osborne's editorship of the Evening Standard, quite fits that global criteria. I'm sure it has nothing to do with the full page comment piece Montgomerie got in Osborne's paper to bemoan the deficiencies of modern media on the day UnHerd launched. 

UnHerd's mascot  – a cow – has also created some confusion, compounded by another line in the writing tips describing it as "a cow, who like our target readers, tends to avoid herds and behave in unmissable ways as a result". At least Montgomerie only picked the second-most famous poster animal for herding behaviour. It could have been a sheep. In any case, the line has since disappeared from the post – suggesting the zoological inadequacy of the metaphor may have been recognised. 

There is one way in which UnHerd perfectly embodies its stated aim of avoiding the new – the idea that we need to address the frenetic nature of modern news has been around for years.

"Slow news" – a more considered approach to what's going on in the world that takes in the bigger picture – has been talked about since at least the beginning of this decade.

In fact, it's been around so long that it has become positively mainstream. That pusher of rolling coverage the BBC has been talking about using slow news to counteract fake news, and Montgomerie's old employers, the Times decided last year to move to publishing digital editions at set points during the day, rather than constantly updating as stories break. Even the Guardian – which has most enthusiastically embraced the crack-cocaine of rolling web coverage, the live blog – also publishes regular long reads taking a deep dive into a weighty subject. 

UnHerd may well find an audience particularly attuned to its approach and values. It intends to introduce paid services – an especially good idea given the perverse incentives to chase traffic that come with relying on digital advertising. The ethos it is pitching may well help persuade people to pay, and I don't doubt Montgomerie will be able to find good writers who will deal with big ideas in interesting ways. 

But the idea UnHerd is offering a groundbreaking solution to information overload is faintly ludicrous. There are plenty of ways for people to disengage from the news cycle – and plenty of sources of information and good writing that allow people to do it while staying informed. It's just that given so many opportunities to stay up to date with what has just happened, few people decide they would rather not know.