Economists warn over pay-out

Economists are warning that the Government's emergency mini-budget to compensate five million people for the abolition of the 10p tax band could prove costly. The plan, which sees the Government pay out £2.7bn, will push public borrowing towards £50bn this year and put the government's fiscal rules in jeopardy. Chancellor Alastair Darling said it was "right and sensible" to allow borrowing to rise as the economy slowed.