Quote:
Originally Posted by LeatherTrumpet
The Chancellor, George Osborne, has outlined the government's plans to "balance the books" by 2016.
Mr Osborne said the government planned to cut the structural budget deficit to zero in the next six years.
The structural deficit represents the hole in the public finances that is not expected to be repaired by economic recovery.
The chancellor also said he expected the UK's total debt levels to have started falling by 2016.
But he added that the Office for Budget Responsibility (OBR) was forecasting that the government would meet these targets a year early, by 2015.
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George Osborne on growth forecast
The OBR, headed by economist Sir Alan Budd, was set up to provide an independent assessment of the state of the UK's public finances and the UK economy.
Total borrowing is expected to fall to 2.1% of GDP by 2015, the OBR said, and reach 1.1% by 2016.
Current borrowing stands at £155bn - 11% of GDP.
The UK's total debt, which currently stands at more than 62% of GDP, is forecast to peak at 70% of GDP in 2013-14, before falling to 67% by 2015-16.
Announcing the plan, Mr Osborne said the Budget "deals decisively with this country's record debts".
Slower growth
Although confirming that the government's target for deficit reduction was achievable, the OBR warned that the economy would suffer as a result.
It is now forecasting that the UK economy will grow by 1.2% this year and 2.3% in 2011, lower than the previous government's forecasts.
http://www.bbc.co.uk/news/10375236 |
Have you seen the date of this article....Osborne ave his crystal ball out did he?
Bit way of the mark
edit: in the same month (june 2010)
'Budget: Osborne's 'tough' package puts VAT up to 20%
Chancellor George Osborne increased VAT from 17.5% to 20% and cut welfare spending as he moved "decisively" to tackle Britain's record debts.
Child benefit and public sector pay will be frozen and 25% cut from public service spending'
5yrs on squeezed to death and no better off.