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Page last updated at 08:16 GMT, Wednesday, 5 December 2012

Economic forecast 'worse than expected'

The Chancellor, George Osborne, is expected to extend his austerity programme of welfare cuts and tax rises when he presents his autumn statement this afternoon.

The government has not raised as much money as it had hoped in taxes and it is likely that borrowing forecasts will rise.

Paul Johnson, The director of the Institute for Fiscal Studies (IFS), told Today presenter Evan Davis that things are a bit gloomier than the chancellor would probably have hoped: "In March the Office of Budget Responsibility thought the economy would grow by about 0.8% this year, not very much but at least positive."

"The average of independent forecast is now that it's actually going to go down this year," he added.

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