The UK growth forecast for 2013 has been lowered to 0.6 per cent by the Office for Budget Responsibility. Announcing economic news at the beginning of his Budget today, Chancellor George Osborne described it as a Budget for an "aspiration nation" but admitted GDP growth was challenging and blamed world and European conditions.
He said that the OBR figure for 2013 was reduced from 1.2 per cent to 0.6 per cent but that growth should pick up next year.
He said growth forecasts were 1.8 per cent in 2014, 2.3 per cent in 2015, 2.7 per cent in 2016 and 2.8 per cent in 2017.
Mr Osborne said it was unlikely the UK would see a second quarter of negative growth, meaning it would avoid a "triple-dip" recession predicted by some pundits.
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The deficit has fallen from 11.2 per cent of GDP in 2009/10 to a forecast 7.4 per cent this year.
There was better news on jobs, he said. He said the employment forecast had increased by 600,000 new jobs for 2013 while the number of people claiming benefits is forecast to fall by 60,000.
Mr Osborne also unveiled a new remit for the Monetary Policy Committee. He said the inflation target would remain at two per cent but that the committee may need to use "unconventional" tools to support the economy.

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