Budget 2016: Economy
UK ‘strong’ but global outlook ‘materially weaker’
George Osborne, delivering his eighth Budget, said the British economy was growing faster than any other major economy.
The Office of Budget Responsibility, however, had revised down its forecasts because the outlook was “materially weaker” because of slower growth in China and turbulence in markets.
The OBR now says the UK economy grew by 2.2% last year and will grow by 2% this year, by 2.2% in 2017 and by 2.1% in each year from 2018 to 2020.
Employment at its highest ever level and the proportion of those claiming out of work benefits is at its lowest since 1974, said Mr Osborne. He said the OBR expects one million jobs to be created over the course of the parliament.
Britain was borrowing £72.2 billion this year and is on course for a surplus of £10.4 billion by 2019/20 and £11bn the following year, he said.