Osborne reveals deficit ‘half what inherited’

Chancellor George Osborne has revealed the deficit is half what he inherited in the Autumn Statement and will continue to fall until the country is in surplus by 2018.

Mr Osborne claimed the the long term economic plan for Britian is working as the deficit has fallen to half what his government inherited.

The deficit continues to fall, according to Mr Osborne, but it remains too high. He aims to continue to “tighten public finances” in the Budget.

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A year ago, growth for this year was predicted at 2.4 per cent, then in March it was predicted to be at 2.7 per cent, however, now it looks to be like 3 per cent.

The expectations for 2015 are predicted to be 2.4 per cent and then 2.2 per cent, 2.4 per cent, 2.3 per cent and 2.3 per cent for the years following until 2019.

Mr Osborne said the deficit will be £91.3 in 2014 and continue to fall in the years to 2017, at £75.9, £40.9 and £14.5 each year. It will then turn to a surplus of £4bn in 2018, before surging to £23bn in the year to 2019.

Meanwhile, he predicts inflation to be 1.5 per cent for 2014, then 1.2 per cent and 1.7 per cent for the years following.

The debt to GDP ratio is expected to be 80.4 per cent for this year. It will rise in 2015 to 81.1 per cent and then fall to 80.7 per cent, 77.8 per cent, 76.2 per cent and 72.8 per cent for the next years until 2019.

The FT reports Mr Osborne has been helped by changes to the way that GDP has been calculated.