Budget 2012: Chancellor George Osborne today upgraded the UK’s growth forecasts for the first time in 18 months.
In today’s Budget the chancellor of the exchequer said the Office for Budget Responsibility had increased GDP growth forecasts for the UK from 0.7% to 0.8% in 2012.
Growth forecast for 2013 is now 2%, 2.7% in 2014 and 3% in 2015 and 2016.
In last year’s Budget the chancellor had downgraded growth from 2.6% to 2.5% with a further scale back to 0.7% in his Autumn Statement in October.
But the chancellor warned that the UK is “not immune” from the eurozone troubles, which remain a major threat to the UK’s growth.
Borrowing is expected to total £126bn in 2011/12, £120bn in 2012/13, £98bn in 2013/14, £75bn in 2014/15 and £52bn in 2015/16 and £21bn in 2016/17.
Osborne said: “This Budget rewards work. Britain is going to earn its way in the world.”