Alistair Darling says “the right calls were made” over the Government’s handling of the recession and financial crisis.
Darling believes the UK economic recovery is broadly on track and expects to see 1% to 1.5% growth in 2010 and an average of between 3% and 3.5% in 2011. The latest forecast is in line with predictions from the Bank of England.
The Chancellor had previously predicted growth would hit at least 3.5% next year.
Public debt will be lower than expected by £11bn for 2010/11 at £167bn. He believes public borrowing will fall to £74bn by 2014/15.
The total budget deficit will be 11.8% of GDP in this fiscal year, falling to 11.1% next year and down to just 4% in 2014/15.
He also re-emphasised his commitment to halve the deficit within four years.
