BLUNDERING George Osborne was told to tear up his entire Budget yesterday after being forced into a humiliating climbdown over cuts to disability benefits amid Tory chaos.

The Chancellor’s U-turn over vicious plans to slash personal independence payments (PIP) for the disabled — which even Tory welfare axeman Iain Duncan Smith branded “unfair” — has blown another £4 billion hole in a budget which already included £3.5bn of unspecific spending cuts.

Now he faces calls to take the unprecedented step of withdrawing the Budget and starting again less than a week after presenting it to Parliament.