Budget 2014–Chancellor Osbourne

This Budget sets out further action to secure the recovery and build a resilient economy.

The Budget supports businesses to invest, export, and create jobs, and cuts taxes for hardworking people – laying the foundations for sustainable economic growth. The Budget sets out the most radical reforms to saving for a generation, providing security for families to plan for their future.

Economic forecast—-GDP growth from 2.4% to 2.7% in 2014 and from 2.2% to 2.3% in 2015, and forecasts GDP growth of 2.6% in 2016, 2.6% in 2017 and 2.5% in 2018. CPI inflation to be below target at 1.9% in 2014.

Fiscal forecast—-Underlying’ PSNB as a % of GDP is forecast to have fallen by half from its 2009-10 peak by 2014-15, and the OBR forecasts a small surplus in 2018-19. PSND is forecast to peak at 78.7% of GDP in 2015-16 – 1.2% lower than forecast at Autumn Statement 2013 – before falling each year and reaching 73.8% of GDP in 2018-19.

In Recognition Of The Need To Continue Reducing The Defecit & Debt, This Budget Is—- 1)Fiscally Neutral despite lower borrowing across the forecast period, an overall reduction in tax funded by a reduction in spending. 2) Sets the level of the welfare cap from 2015-16 to 2018-19 3) Confirms that departments remain ahead of their consolidation targets 4) Reduces Spending in the next Parliament by locking in spending reductions announced at Autumn Statement 2013 for future years 5) Confirms that pay awards for most public sector workers will be limited to 1% in 2014-15 will the intention of extending that period to 15-16 6) The introduction of a new  & highly secure £1 coin.


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