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Budget: Osborne targets £10bn surplus by 2019/20

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Chancellor George Osborne says the Government will run a £10bn surplus by 2019/20.

In his Budget speech today, Osborne forecasts a surplus of 0.4 per cent of GDP in 2019/20. He says this will be followed by a surplus of £11.6bn, equivalent to 0.5 per cent of GDP, in 2020/21.

The deficit is forecast to be 3.7 per cent in 2015/16, before falling to 2.2 per cent in 2016/17, and 1.2 per cent in 2017/18. In 2018/19 the deficit is expected to fall to 0.3 per cent.

The Office for Budget Responsibility has revised down its forecast for GDP growth for this year, from 2.5 per cent to 2.4 per cent.

The OBR expects the economy to grow by 2.3 per cent in 2016. It has revised up its forecasts for both 2017 and 2018 from 2.3 per cent to 2.4 per cent.

In 2019 the OBR forecasts growth of 2.4 per cent.

The Chancellor announced borrowing will be £69.5bn in 2015/16, before falling to £43.1bn the following year.

In 2017/18 it will be £24.3bn, and in 2018/19 it will fall to £6.4bn.

Osborne says the OBR had forecast the creation of one million jobs over the course of this parliament. The Government has set a target of two million jobs.

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