Republican errors on US debt threaten deal

Republican John Boehner today faced a revolt from within his own party after it was revealed his debt deal calculations did not add up.

With critical talks over raising the US debt ceiling deadlocked, budget officials revealed the Republicans had made errors in their proposals.

Mr Boehner is demanding cuts in spending in exchange for votes to increase the country's overdraft. If a deal is not struck by August 2 the US will be unable to pay its bills.

Last night Tea Party conservatives attacked House of Representatives' speaker Mr Boehner, claiming his plan would not cut as much from spending as he had initially promised. He vowed to go back to the drawing board.

The White House offered a glimmer of hope today, confirming it was working with Congress to craft a "Plan B". That raised hopes a deal could still be done as the pressure from anxious financial markets increased.

Analysts have warned of dire consequences if there is no agreement by next Tuesday. Credit rating agencies have threatened to downgrade the United States' AAA rating.

The main sticking point is how many trillions of dollars' spending to cut in exchange for increasing the government's £8.7 trillion overdraft.