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Budget 2011: Annual growth forecast downgraded to 1.7%

Chancellor George Osborne says annual growth will reach 1.7 per cent in 2011/12, which is lower than the predicted growth of 2.1 per cent.

Osborne says this is due to a weaker than expected final quarter in 2010, global commodity price shocks and high UK inflation.

He said real GDP will increase to 2.5 per cent next year, down slightly from the 2.6 per cent predicted. Osborne said it will grow 2.9 per cent in 2013/14 and 2014/15, then fall back to 2.8 per cent in 2015/16.

Osbourne also said UK inflation will stay between 4.5 and 5 per cent this year, falling back to 2.5 per cent in 2012/13 and 2 per cent in two years’ time.

Yesterday, the Office for National Statistics announced the CPI annual inflation rate in the UK rose to 4.4 per cent in February, its highest level since 2008.

Osborne confirmed the inflation target will remain at 2 per cent.

Government borrowing forecasts to fund the deficit have come in at £146bn for 2011/12, below the Office of Budget’s Responsibility’s predicted borrowing for the year of £148.5bn.

Osborne says the Government is aiming to bring public sector borrowing down to £29bn by 2015/16.

National debt as a propotion of GDP for this year is 60 per cent.



Budget 2011: Labour attack “Budget for growth”

Labour has attacked the Chancellor’s “Budget for growth” after official growth figures were downgraded to take its proposals into account. Speaking in response to George Osborne’s Budget statement in the House of Commons today, Labour leader Ed Miliband said UK growth is being downgraded despite other nations seeing improving figures. He said: “What is the […]


Budget 2011: Govt confirms £250m scheme to help first-time buyers

Chancellor George Osborne has confirmed plans to launch a £250m scheme to help first-time buyers raise a deposit for a home. Giving his Budget speech today, Osborne said the shared equity scheme will help up to 10,000 first-time buyers raise a deposit for a home, confirming reports published earlier today. The scheme, which is available […]


Budget 2011: Public sector employers face £8bn pensions discount rate bill

Public sector employers could face additional pension costs of more than £8bn a year after the Government set the discount rate for pension contributions at 3 per cent above CPI. The Budget document says the discount rate will be based on the long-term expectation of GDP growth to ensure employment decisions made today take into […]

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EEF/Jelf Employee Benefits Sickness Absence Survey 2015

EEF stated in its 2015 EEF Manifesto that the UK’s growth prospects depend on people being fit, working and productive. Keeping people in work and helping people return to work is very important for the manufacturing sector. It means boosting productivity by getting people back into work as early as is possible, as well as fostering workplace cultures and environments that proactively manage individuals’ health conditions so that all can benefit from lower sickness absence outcomes.


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