5th December 2013
Britain is predicted to grow at 1.4% in 2013 from a previous estimate of 0.6%. The Office for Budget Responsibility has also lifted its forecast for 2014 to 2.4% from 1.8%.
In his autumn statement, the Chancellor George Osborne told the House of Commons: “Over the last three years we have stuck to our guns, worked through the plan. I can today report the hard evidence that shows our economic plan is working.”
“I also report the hard truth that the job is not yet done. Yes, the deficit is down. But it is still far too high and today we take more difficult decisions.”
The forecast for the next four years has been lifted to 2.2 per cent, 2.6 per cent, 2.7 per cent and 2.7 per cent.
The Chancellor also predicted that the Government will run a “small” budget surplus in 2018-19, while the deficit will amount to 6.8 per cent this year – down from 11 per cent in 2010.
The OBR now expects the UK economy to have created 400,000 jobs this year, up from its previous outlook of ‘flat’ growth, while unemployment is expected fall to 7 per cent by 2015.