Budget 2010: Osborne slashes UK growth forecast

Chancellor George Osborne today lowered the UK's economic growth forecast for the next five years.

Unveiling what he called an "unavoidable" Budget, Osborne said economic growth this year would be 1.2%, in line with Darling's forecasts in March of between 1% and 1.25%. But, in 2011, Osborne said growth would be 2.3%, much lower than Darling's estimate of between 3% and 3.5%. After that, GDP growth will be 2.8% in 2012, 2.9% in 2013 and 2.7% in both 2014 and 2015. Elsewhere, Osborne said the UK is set to miss the previous government's "golden rule" - of borrowing only to invest over the economic cycle - in the current cycle by £485bn. Consumer price inflation is expected to re...