George Osborne

The UK is facing a "cocktail" of risks to its economy in 2016, the Chancellor George Osborne is to reveal over the year.

Speaking to the BBC, Mr Osborne said he will spend the next 12 months outlining the risks that face the economy. In fact, he is expected to claim that 2016 will be the toughest year since the financial crisis.

On BBC Radio 4's Today programme, the Chancellor said: "It is precisely because we live in an uncertain world. It is precisely because we have not abolished boom and bust as a nation, that you need to take these steps, difficult steps and I need to go explaining to the public, that the difficult times aren't over, we have got to go on making the difficult decisions, precisely so that Britain can continue to enjoy the low unemployment and the rising wages that we see at the moment."

Just a few months ago, in the Autumn Statement, Mr Osborne painted a picture of the economy "growing fast". He told the BBC that the Autumn Statement unveiled a four-year plan to rebalance the country's finances and boost productivity among businesses so that the country is better prepared to deal with future risks.

In a speech later today, the Chancellor is expected to talk about some of the biggest risks, which include tensions in the Middle East, a slowing Chinese economy and low commodity prices.