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

Video: Alex Lawson provides a run-down of the day's major news from the City

Click to follow
The Independent Online

Don't miss out on the goings on in the business world, with our daily round-up of the biggest news from the City.

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.