Autumn Statement 2015: Osborne announces £8bn drop in borrowing; U-turns on tax credits

U-turns on tax credit cuts

Chancellor George Osborne has committed to borrowing £8bn less than forecast in the summer Budget, allowing the government to reach a surplus while making less severe cuts in the next few years.

Speaking today, Osborne (pictured) said this saving will allow him to spend £12bn more on capital expenditure, allowing faster progress in building key infrastructure. He revealed that, according to the Office for Budget Responsibility, borrowing will be £73.5bn this year, down from £74.1bn initially expected. This would fall to £49.9bn in 2016/2017, reaching a surplus of £10.1bn in 2019/2020. The latest figures also show national debt is forecast to be 82.5% of national income this year, based on a new measure of calculation, lower than the 83.6% predicted in the summer Budget. This ...