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BUDGET 2012: Britain will borrow £1bn less this year 21 March 2012

Britain will borrow £1bn less than previously predicted this year, the Office for Budget Responsibility has confirmed.

Chancellor George Osborne announced total borrowing for this year will come in at £126bn rather than £127bn as forecast in the autumn.

He added the OBR has calculated total borrowing up to 2016-17 will also be £11bn less – when the structural deficit is also predicted to be eliminated.

Speaking at today’s Budget Osborne insisted: “Our deficit reduction plan is on course and we will not waver from it.

“We must stick to the course so there will be no giveaways.

“To do so would risk a sudden loss of confidence. Instead we reinforce today our commitment to fiscal responsibility.”

Osborne also confirmed borrowing will fall to £120bn next year, £98bn in 2013-14, before dropping to £75bn and eventually £21bn in 2015-16.

But earlier today, the Office for National Statistics confirmed the government had borrowed almost twice as much as expected in February.

Public sector net borrowing rose to £15.2bn compared to £8.9bn in February 2011 and previous forecasts of £8bn.

Speaking to the BBC, Vicky Redwood, chief UK economist at Capital Economics, said: “Growth of tax receipts slowed and, after under spending for the rest of the financial year, departments appear to have had a final splurge.”

 

 

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