fears growing over Middle East

THE Chancellor's promise of a low-key spring forecast was music to our ears.

- BY RUTH CURTICE CHIEF EXEC RESOLUTION FOUNDATION

And she delivered a boring nonevent as promised.

There were no last-minute rabbits out of the hat, or new policies. But the £5.7billion of spending rises - mainly to boost special education - meant it was a bigger event in borrowing terms than many.

And developments in the Middle East risk rendering the OBR's sunny outlook for inflation and interest rates out of date.

Inflation is set to fall back to 2 per cent before year end. But if the overnight spike in oil and gas prices is sustained, it could creep up to 3 per cent by summer.