Govt 'won't hit debt target before 2017'
The Government will be told this autumn that it will need to extend the deficit reduction programme until 2018 due to higher than expected borrowing.
The Financial Times has replicated the Office for Budget Responsibility’s model and found the UK is unlikely to meet the Government’s plan of having debt falling as a proportion of GDP before 2017/18.
Speaking on the Today programme this morning, George Osborne defended the Government’s progress in cutting the deficit, but refused to be drawn on whether its targets would be missed.
“And it’s precisely because I want to get away from chancellors giving a running commentary on their own economic policy and its targets and its forecasts that I’ve created this independent body and it commands confidence around the world.”
Meanwhile a survey by EEF, the manufacturers association, found members calling on the Coalition to focus on economic growth, rather than reducing the deficit.