Budget 2010: Borrowing revised down as deficit plan outlined
BRITAIN has the fastest deficit reduction plan of any G7 nation which will see its deficit more than halved over the next four years, the Chancellor said in today’s Budget.
Alistair Darling said debt would be £100bn lower than forecast by 2013-14 while public sector net debt is forecast to be 54% of GDP this year.
Mr Darling downgraded his 2011 growth forecasts for the UK economy to 3% from 3.5% but also revised down his borrowing forecasts from £178bn to £167bn this year.
He said growth would be 1% to 1.5% this year.
The Chancellor said tax receipts in December, January and February had been higher than expected, with corporation tax and income tax bringing in more money.
Although lower than first feared, borrowing this year is still expected to be at a record high – equivalent to 11.8% of GDP.
By 2014, Mr Darling said he expected borrowing to be reduced to 5.2% of GDP – 0.5% less than previously targeted.
Terry Jones, tax partner at accountants BDO in Leeds, said: “He is portraying that we are going in the right direction. The deficit is still the big issue. He didn’t want to do anything that would enable the Tories to say that it’s not coming down.”
