Monday, 23 April 2012

Osborne will miss deficit target, says think-tank

Government borrowing is set to be almost £70bn higher than estimated in the Budget, according to an economic think-tank.

The Centre for Economics and Business Research warns that high inflation will lead to sluggish economic growth until 2016.

This means Chancellor George Osborne would overshoot the borrowing figures set out in last month’s Budget.

In his March 21 speech, Osborne told MPs that the latest forecast from the Office for Budget Responsibility was for the deficit to fall to £21bn in 2016/17. But the CEBR says that borrowing will be £90bn that year because of ‘sluggish’ growth in tax revenues.

The think-tank’s quarterly United Kingdom Prospects report increases its estimate for gross domestic product growth in 2012 to 0.3%, up from a 0.4% contraction it predicted three months ago.

1 comment:

  1. Osborne seems to be getting his predictions wrong. We are in a bigger recession and before he took office... I believe the public have lost confidence in him, and in the leadership of Cameron.