Giving his Autumn Statement, Osborne said public sector net borrowing is now forecast to stand at £91.3bn this year, down from £97.5bn last year and above the £86.4bn forecast in March’s Budget.
The figures, while showing an initial deterioration in borrowing, make for better reading than some had hoped in later years, according to the independent forecaster.
Estimates for 2015 borrowing have also been revised up, from £69bn to £75.9bn, but figures for 2016 and beyond are lower than expected.
Borrowing will fall to £40.9bn by 2016, £14.5bn by 2017 and then rise to a surplus of £4bn in 2018-19, Osborne said, citing OBR forecasts.
“We end in a marginally stronger position than expected in the Budget. By 2019-20 Britain is now expected to have a surplus of £23bn,” said the Chancellor.
Meanwhile, the 2014 growth rate was revised up from an estimated 2.7% in March to a current forecast of 3%, as expected.
Growth forecasts for future years, however, were lower than expected, and 2016-18 annual figures were revised down.
“The warning lights are flashing over the global economy,” Osborne said, pinning the blame on the OBR revising down global growth forecasts.
In the UK, the OBR now expects growth to come in at 2.4% next year, up from a March prediction of 2.3%. But the GDP forecast was revised down from a 2.6% forecast to 2.2% for 2016, down from 2.6% to 2.4% in 2017, and down from 2.5% to 2.3% in 2018.
