GEORGE OSBORNE has predicted the UK will run a budget surplus by 2018 and used his Autumn Statement to insist that the government’s economic policies are working.
In his statement to the commons, the chancellor said the economy was growing faster than any other major advanced economy, and was outstripping forecasts made at the time of the Budget in March.
The economy is now expected to grow at 1.4% this year – double the March prediction – with growth expected to reach 2.4%, instead of 1.8%.
The chancellor also predicted that the government will have eradicated the deficit by 2018/19. From 11% in 2010, the underlying deficit now falls to 6.8% this year, to 5.6% in 2014, then 4.4%, 2.7% and to 1.2% in 2017/18.
“Britain’s economic plan is working. But the job is not done. We need to secure the economy for the long term,” Osborne said.