The state of the UK’s public finances

Recent economic data showing rising government borrowing and falling corporation tax revenues have exacerbated the pressure on George Osborne ahead of December’s Autumn Statement.

With the economy stagnating, the chancellor will probably need to admit he is unlikely to meet his target of getting public sector net debt falling as a share of national income by 2015-16, raising the prospect of more years of austerity.

FT economics editor Chris Giles explains the economic backdrop to the Autumn Statement and the options open to the chancellor.