The Chancellor will cut the official economic forecast for 2009 to around -4.75%, from the Budget's forecast of a 3.5% contraction, according to Treasury sources.
The sources told the Telegraph output had fallen faster than expected at the start of the year, but added that they still expected the economy to start growing again before the end of 2009. The downgrade will be an embarrassment to the Chancellor, who is also likely to have to increase his borrowing projection marginally, since tax revenues have disappointed expectations this year. Full story...
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