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PM rebuked over economy claim

The head of the independent fiscal watchdog has criticised David Cameron for misrepresenting its views on the impact of austerity measures of the economy.

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OBR slams Cameron for misrepresenting its position

The head of the independent Office for Budget Responsibility (OBR) has rebuked the Prime Minister for misrepresenting its position on the impact of austerity measures.

Office for Budget Responsibility chairman Robert Chote wrote to David Cameron to dispute claims made in a high-profile speech yesterday.

Mr Cameron said the OBR was "absolutely clear that the deficit reduction plan is not responsible" for depressed growth - "in fact, quite the opposite".

But Mr Chote insisted that it in fact believed there was a short-term effect and that "fiscal consolidation measures have reduced economic growth over the past couple of years".

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