Budget 2012: Growth Forecasts
Taking a tough stance with a fiscally neutral budget, the chancellor has told the House of Commons that ‘there will be no deficit budget giveaways today. Over the five year period, he confirmed that this is a fiscally neutral budget’.
He confirmed that the UK will avoid a technical recession and the Office for Budget Responsibility has slightly revised up growth forecasts to 0.8% in 2012, 2% for 2013 and 2.7% for 2014. There will be strong ‘backing for growth industries like aerospace, creative media and science to rebalance the economy to reduce dependence on the financial industry, which is strong but not the only economic driver.
The deficit is falling and is forecast to reach 7.6% next year. Osborne said: ‘We must stick to the course,’ and added that ‘there will be no unfunded giveaways’.