Tuesday, 22 June 2010

Osborne: This is the unavoidable Budget.

12:45 BREAKING NEWS: The chancellor argues that his austere Budget is "unavoidable". His strategy is to argue that this is a Budget made necessary by Labour's failures and is not an ideologically driven project to slash the state.

The chancellor is going further than the pre-election promise to eliminate the "bulk" of the structural deficit. He now says he is aiming to balance the books by the end of the parliament. This signals that steep cuts and tax rises are due to be announced.

UPDATE: October 20th set as date for Comprehensive
Spending Review.

Borrowing for 2010 at £149bn, £20billion in 2016

Economic growth 1.2% in 2010, 2.7% in 2013

Unemployment to peak at 8.1% this year, falling to 6.1% in 2015

Net debt 62% this year, peaking at 70% in 2013/14

Public spending cuts of £30billion a year by 2014/15

Departments face cuts of 25% over the next five years

Osborne pledges not to join the Euro in this Parliament

Civil list frozen at £7.9m