LONDON, March 15 (Reuters) – British finance minister Jeremy Hunt set out his budget on Wednesday, seeking to snap the world’s sixth-biggest economy out of its run of stagnant growth. Below are the details as set out in parliament:
HUNT ON INFLATION
“Despite continuing global instability, the OBR report today that inflation in the UK will fall from 10.7% in the final quarter of last year to 2.9% by the end of 2023.”
HUNT ON DEBT
“I now turn to the Prime Minister’s second priority, which is to reduce debt. Here too our plan is on track. Underlying debt is forecast to be 92.4% of GDP next year, 93.7% in 2024-25; 94.6% in 2025-26, and 94.8% in 2026-27, before falling to 94.6% in 2027-28.”
HUNT ON BORROWING
“At the Autumn Statement I also announced that public sector net borrowing must be below 3% of GDP over the same period. The OBR confirm today that we are meeting that rule with a buffer of 39.2 billion pounds. In fact our deficit falls in every single year of the forecast, with borrowing falling from 5.1% of GDP in 2023-24, to 3.2% in 2024-25, 2.8% in 2025-26, 2.2% in 2026-27 and 1.7% in 2027-28.
“Even better, in the final two years of the forecast our current budget is in surplus, meaning we only borrow for investment and not for day-to-day spending.”
HUNT ON THE STATE OF THE ECONOMY
“In the face of enormous challenges I report today on a British economy which is proving the doubters wrong. In the autumn we took difficult decisions to deliver stability and sound money. Since mid-October, 10-year gilt rates have fallen, debt servicing costs are down, mortgage rates are lower and inflation has peaked.”
HUNT ON TECHNICAL RECESSION
“Today the Office for Budget Responsibility forecast that because of changing international factors and the measures I take, the UK will not now enter a technical recession this year.
“They forecast we will meet the Prime Minister’s priorities to halve inflation, reduce debt and get the economy growing.”
HUNT ON FUEL DUTY
“Because inflation remains high, I have decided now is not the right time to uprate fuel duty with inflation or increase the duty.
“For a further 12 months I’m going to maintain the 5p cut … and I’m going to freeze fuel duty too. That saves the average driver 100 pounds next year and around 200 pounds since the 5p cut was introduced.”
British Chancellor of Exchequer Jeremy Hunt waves at his family as he poses with the Budget Box before presenting the government’s annual budget to Parliament in London, Britain, 15 March 2023. Hunt will announce Britain’s first budget for 17 months in his Spring Budget with the expansions to free childcare and energy bill support are expected to boost the British economy. EPA-EFE/TOLGA AKMEN
