UK growth predicted to be 0.7% next year
Chancellor predicts 0.9% growth this year, 0.7% next year and
2.1% by 2013.
The structural deficit is forecast to fall to 0.5% in five years
and debt to GDP ratio is set to peak at 78% in 2014/15.
‘The problem has been exacerbated by rising commodity
prices. Borrowing is falling and debt will fall. We are set to meet
our budget rules and we will see Britain through our debt storm,’
says Chancellor George Osborne. ‘Yesterday we were even borrowing
money more cheaply than Germany.’
Public sector pay squeeze
Public sector pay rates will be capped at 1% for two years after
pay freeze ends in 2013, creating an ongoing squeeze on public sector
workers.
