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| Budget 2016: Growth forecasts cut for next five years | Budget 2016: Growth forecasts cut for next five years |
| (35 minutes later) | |
| The UK economy will grow less in the next five years than had been expected in November. | The UK economy will grow less in the next five years than had been expected in November. |
| The Office for Budget Responsibility (OBR) had previously forecast that the economy would grow 2.4% this year, but is now predicting a rate of 2.0%. | The Office for Budget Responsibility (OBR) had previously forecast that the economy would grow 2.4% this year, but is now predicting a rate of 2.0%. |
| Growth in the next two years has been cut by 0.3 percentage points while 2019 and 2020 are down from 2.3% to 2.1%. | Growth in the next two years has been cut by 0.3 percentage points while 2019 and 2020 are down from 2.3% to 2.1%. |
| Chancellor George Osborne said the cuts had been due to a reduction in the growth expected elsewhere in the world. | Chancellor George Osborne said the cuts had been due to a reduction in the growth expected elsewhere in the world. |
| He also announced in his Budget that the OBR had revised UK productivity growth downwards. | He also announced in his Budget that the OBR had revised UK productivity growth downwards. |
| The OBR unexpectedly reduced the amount it expects the government to borrow in the current financial year from £73.5bn to £72.2bn. | |
| In the first 10 months of the financial year, the government has already borrowed £66.5bn, so many commentators predicted that the forecast would have to be raised. | |
| The forecasts for the following three years have been increased considerably, although the OBR still expects the government to achieve a surplus in 2019-20 and 2020-21. | |
| On the total amount of government debt (as opposed to the amount borrowed in a single year) the chancellor admitted that the figure as a proportion of GDP would be higher than it was last year as a result of lower GDP, but that the total amount owed would actually be £9bn lower. |