Revealed: how Osborne manipulated the borrowing figures

Chancellor included 4G receipts and gilt interest payments to make it appear as if the deficit will fall this year.

Against expectations, George Osborne announced in his Autumn Statement that borrowing would fall, not rise, this year. The news cheered the Conservative backbenches and clearly surprised Ed Balls, who was jeered by Osborne and David Cameron as he mistakenly said the deficit was "not rising" (he meant to say it was rising). Borrowing so far this year is £5bn (7.4 per cent) higher than in the same period last year - it seemed there was no escape route for the Chancellor.

So how did he do it? Well, turn to p. 12 of the Office for Budget Responsibility document and it becomes clear that Osborne has performed an accounting trick worthy of Enron. First, he added the expected £3.5bn receipts from the 4G mobile spectrum auction - even though it's yet to take place. Second, he included the interest transferred to the Treasury from the Bank of England's Quantitative Easing programme (worth £11.5bn), despite the Institute for Fiscal Studies warning him that it would call into doubt his credibility. Were it not for these two measures, borrowing would be £15bn higher than stated by Osborne. If we add that £15bn to the £108bn figure provided by Osborne, then total forecast borrowing for this year becomes £123bn, £1.4bn higher than last year. Little wonder that the Chancellor was so keen to bag the 4G receipts early.

But while these fiscal somersaults might allow Osborne to claim he's reduced borrowing, what reputation he had for statistical transparency has been destroyed. In his speech to the Commons, the Chancellor boasted that "it is a measure of the constitutional achievement that it is taken for granted that our country’s forecast is now produced independently of the Treasury". That claims looks very questionable today.

George Osborne leaves the Treasury ahead of the Autumn Statement. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The snowflake Daily Mail cries over free market capitalism taking our blue passports

UK, hun?

The poor old whining snowflakes at the Daily Mail have discovered that maybe it’s better to put the state above private companies after all.

They’ve run a ranty yet doleful lament on their front page about Britain’s “ruling class” (which they are definitely, definitely not part of, of course) showing its “hate” for “our country” by letting a Franco-Dutch firm make our post-Brexit blue passports:

“Today the Mail has a question for Britain’s ruling class: Why DO you hate our country, its history, culture and the people’s sense of identity?”

In a beautiful bit of irony, the £490m contract to make our grim new tickets to bigotry was awarded to Gemalto, a Franco-Dutch firm that beat the British-based De La Rue (lol) that also tried bidding for the contract.

The Mail’s complaint seems to be that the bloody Frogs shouldn’t be making our passports – the UK should be doing it instead. So, according to this logic, either the state should make them, or, to guarantee a private British firm winning the contract, the state should ignore free market forces?

Neither seem particularly in tune with the Mail’s usual preferences. Nor those of the Tory Brexiteers, for that matter.

Yes, this is part of European competition law – big public contracts like this have to be open to bids from across the EU. But right-wingers in this country don’t seem to mind when foreign companies run our railways (Greater Anglia, West Midlands and ScotRail franchises are majority-owned by the Dutch state company Abellio).

Looks like these over-sensitive social justice warriors want to have their cake and eat it. Political correctness gone mad.

I'm a mole, innit.