British Chancellor George Osborne downgrades growth forecast in annual budget
Wednesday, March 20, 2013
The British George Osborne delivered the budget today, an annually-held audit of the country's finances deciding how taxpayers' money should be spent. He set out plans to boost the in his fourth budget, as well as stating the economy will grow by 0.6% — half his prediction four months ago.
George Osborne revealed plans to improve the housing market, including a "Help to Buy"scheme which would offer buyers who can place a 5% deposit on a new house, a 20% loan to buy it. He said: "This is a budget for those who aspire to own their own home". He also offered a new Mortgage Guarantee, created in conjunction with mortgage lenders — the scheme would allow them to offer loans to homeowners without the need for a large deposit and offer guarantees to support up to 130bn of lending for three years beginning in 2014.
The IMF, the and the of the ."(OBR) stated the government debt reduction programme to reduce the will miss its targets. The government has forecast the will begin to fall by the financial year 2015/2016, while OBR says national debt will reach a high of 85.6% of , £1.58 trillion, in 2016/17. Osborne defended the government efforts to reduce the deficit and said: "Our judgement has since been supported by the
In response to the Budget speech, the Ed Miliband said: "At the worst possible time for the country. It’s a downgraded budget from a downgraded Chancellor [...] Debt is higher in every year of this Parliament than he forecast at the last Budget. He is going to borrow £200 billion more than he planned."
Thesaid to , "They are borrowing £245bn more in this Parliament, we said all along …said this two years ago, if they had moved more quickly with a sensible, targeted package of measures to kick-start the economy, which would have meant at that time more borrowing for a VAT [ ] cut to bring forward housing investment, then we would have got the economy growing and the deficit coming down."
The head of the British, John Walker, said: "The Budget opens the door for small businesses to grow and create jobs. The Chancellor has pulled out all the stops with a wide ranging package of measures to support small business. [...] [W]e are pleased to see the scrapping of the 3p fuel duty due in September".
, the General Secretary of , criticized the budget for not helping working families. He said: "This is a Budget for the few by the few that attacks the many. Millionaires are days away from getting a £40,000 tax cut from the Tories, but George Osborne is using the budget to attack hard-working public sector workers. The worst chancellor in British history has gone further by giving big business another tax cut while staff caring for the sick get pay cuts. [...] [H]e should have raised the national minimum wage by £1 and drop the senseless plan to give millionaires a tax break in a few days' time".
- "Britain loses AAA credit rating due to poor economic growth and continued austerity" — Wikinews, February 25, 2013
- "UK economy shrinks by 0.3% in fourth quarter of 2012" — Wikinews, January 25, 2013
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- "Full Text: Ed Miliband’s Budget Response" — , March 20, 2013
- "Budget 2013 statement" — , March 20, 2013
- John Rentoul. "Ed Balls on the Budget" — , March 20, 2013
- Andrew Trotman. "Budget 2013: reaction" — , March 20, 2013
- "Budget 2013: Vince Cable on UK's 'very deep crisis'" — , March 20, 2013