View more on these topics

Budget 12: OBR nudges up UK growth forecasts

The Office of Budget Responsibility has raised its growth forecast for 2012 from 0.7 per cent to 0.8 per cent and says that Government borrowing will fall more quickly than expected.

Data released by the independent forecaster alongside the Chancellor’s Budget predicts the economy will grow by 0.8 per cent in 2012 and 2 per cent in 2013. It says the economy will grow by 2.7 per cent in 2014, 3 per cent in 2015 and 3 per cent in 2016.

Delivering the Budget in the House of Commons this afternoon, Chancellor George Osborne said: “The OBR expects that the UK will avoid official recession.”

At the time of the autumn statement in November, the forecaster expected growth of 0.7 per cent in 2012 and 2.1 per cent in 2013. It said the economy would grow by 2.7 per cent in 2014, 3 per cent in 2015 and 3 per cent in 2016.

The Economic and Fiscal Outlook also shows that Government borrowing will fall more quickly than previousl expected. It predicts borrowing for 2011/12 will be £126bn, falling to £21n in 2016/17. The OBR’s November forecast expected Government borrowing to fall from £120bn this year to £24bn in 2016/17.

The OBR says public borrowing will be £120bn in 2012/13, £98bn in 2013/14, £75bn in 2014/15, £52bn in 2015/16, and £21bn in 2016/17. In November it said those figures would be £120bn in 2012, £100bn in 2013, £79bn in 2014, £53bn in 2015, and £24bn in 2016.

Osborne said: “This is £11bn less borrowing than forecast in November and the money will be used to pay down Governewmnt debt.”

The size of the state as a share of GDP will also fall from 48 per cent in 2010 to 43 at the end of the parlaiment in 2015.

For Money Marketing’s full coverage of the Budget click here.



Estate agents are warning borrowers off HSBC, says Law Society

Estate agents have started to advise mortgage borrowers against using HSBC because of its recent decision to cut its conveyancing panel to just 42 firms, says The Law Society. The lender made the decision in January and although customers are free to choose their own solicitor, HSBC will still use a panel firm for its […]


Spreadbetting firm placed in special administration by FSA

FSA has placed spreadbetting firm Worldspreads into special administration, the third firm to be targeted under the new powers. Trading in Worldspreads’ parent was suspended by the Alternative Investment Market last week, pending an announcement, which revealed accounting irregularities. The regulator claims the accounting irregularities made it unable to continue in business. KPMG’s Jane Moriarty […]

FE Adviser Fund Index

There has long been a debate about the use of arbitrary timeframes to judge the relative performance of funds. But this problem has become even more acute over the past decade as stockmarkets seemed to contradict claims that Britain had seen the end of “boom and bust” returns. There is no doubt that equity investors […]

Virgin Money to no longer offer fast track

Virgin Money is to no longer offer a fast track facility for mortgage applications. This means that all mortgage applications will now require income verification.   All pipeline applications already agreed on a fast track basis will be honoured, unless there is a material change to the case which takes it outside of fast track […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm