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 reach 2.7% by the end of 2010 before "returning to target in the medium term". The inflation target remains at 2%, as measured by the Consumer Prices Index.
Osborne said the structural current deficit "should be in balance" by 2015-16.
He said the measures he introduces today are forecast to result in public sector net borrowing of £149bn this year, £116bn next year, £89bn in 2012/13 and £60bn in 2013/14. Osborne said, by 2014/15, borrowing would reach £37bn, falling to £20bn in 2015-16.
In what he called a "forward-looking" fiscal mandate, Osborne said the coalition Government would ensure that debt is falling as a percentage of GDP by 2015/16.
He said the bulk of the deficit reduction must come from lower spending rather than higher taxes, declaring the nation is in economic trouble because of "overspending, not under-taxing".
Cuts, he said, would be derived from 77% of total consolidation spending and 23% tax increases. The original forecast was for an 80/20 split.
Elsewhere, the newly-formed Office for Budget responsibility (OBR) says unemployment will peak this year at 8.1%, then fall each year to reach 6.1% in 2015.
In an unexpected move, Osborne also confirmed the country would not be joining the euro.
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