The City roundup video: Osborne facing £16bn black hole

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The Independent Online

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Economists warned today that George Osborne's target of cutting the deficit this year looks impossible.

It comes as new figures show the Treasury borrowed £7.7 billion in October. So far this year the Government has racked up £3.7 billion more debt than it has this time last year - well-ahead of forecasts.

So why is Osborne still borrowing too much? While the economy has recovered over the past few years, wages haven't kept pace, meaning the Government hasn't been able to collect as much tax as hoped.

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