CHANCELLOR Osborne inhabits a fantasy world where his policy of taking from the many to redistribute to the few has led to a global fall in oil prices and a supermarket price war.

Osborne is in denial, as his policies have led to him repeatedly missing his own spending targets, racking up £200bn in extra government borrowing and low wages which has pushed up work benefits to an eye watering £94billion a year. Despite the fall in inflation, people will still be worse off than they were in 2010.

As we now enter a stage of deflation, we will see tax revenues fall even further leading to more cuts or more borrowing with companies withdrawing investment as profits flat line – hardly a sign of a fixed economy.

Japan has suffered from deflation and a stagnating economy for a decade, with the Eurozone and the UK about to follow.

The bank of England policy is to keep inflation at around 2 per cent. The governor of the Bank of England will now be writing to the chancellor to explain why inflation has fallen so low and how he plans to deal with it. Osborne has failed, by his own measure.

Cllr Nigel Dix, Blackwood